Study On The Reasons,Effects And Risk Prevention Of Alibaba Mergers Weibo

Since the year 2012,a large number of Internet companies enrich their businesses by means of mergers and acquisitions,which exerts great effects to the world economy.For example,Alibaba mergers Youku Tudou Inc.,58.com mergers ganji,Ctrip mergers qunar.com,Wanda Group mergers Legendary Pictures,Tencent mergers Supercell,JD mergers Shanghai Yi is an Agel Ecommerce Ltd.and so on.With the spread of the concept of Internet Plus and the implement of the strategy of Made in China 2025,an increasing number of traditional enterprises explore their businesses on the Internet.In addition,the border between different companies becomes more obscure,which benefits cross-border mergers and acquisitions.In 2008 Alibaba began to establish the E-commerce Ecosystem,which mainly focused on e-commerce,finance and logistics based on big data service and explored its businesses globally.Alibaba is the largest e-commerce platform.Meanwhile,Weibo is one of the largest social media online.The merger and acquisition between Alibaba and Weibo is to establish the largest platform for both e-commerce and social media.The thesis studies the phenomenon of mergers and acquisitions of Internet companies based on referring to the theoretical studies and practical experience of the issue.First of all,the thesis focuses on the studies of some basic concepts and theories such as Internet companies,mergers and acquisitions,motivations and effects of mergers and acquisitions and so on.Then it analyses the process,the motivations and effects of the merger and acquisition between Alibaba and Weibo.The effects of the merger and acquisition between Alibaba and Weibo include synergetic effect and scale economies effect.Moreover,the thesis explores the risks before,during and after the merger and acquisition between Alibaba and Weibo.Furthermore,the methods of risk prevention before,during and after the merger and acquisition of Alibaba and Weibo are proposed.The thesis makes conclusions as follows:(1)The motivations of the merger and acquisition between Alibaba and Weibo are realizing scale economies effect,fulfilling the need of market development,improving the comprehensive competitiveness and broadening the financial channels.(2)The effects of the merger and acquisition between Alibaba and Weibo are reflected in two sides.On the one hand,the merger and acquisition between Alibaba and Weibo brings more benefits for both sides,which creates the synergetic effect.(3)The thesis analyzes the risks of the merger and acquisition between Alibaba and Weibo before,during and after the M&A process.(4)Finally,the thesis proposes some suggestions to cope with the risks of mergers and acquisitions.The suggestions are as follows: Firstly,before mergers and acquisitions,Alibaba should make the strategic motivation clear,choose appropriate destination companies,establish risk estimation system and optimize M&A plans.Secondly,during the M&A process,it is suggested that Alibaba use both cash and stocks to make a payment in order to control the risks of payment.Thirdly,after mergers and acquisitions,it is proposed that Alibaba should try its best to deal with the combination and cooperation issues in business operation,human resources,enterprise cultures and development strategies between the two companies.