Analysis Of The Causes And Effects Of Internet Enterprises' M & A

With the rapid development and maturity of China's Internet industry,industry integration is also gradually accelerating,more and more Internet enterprises through mergers and acquisitions to achieve leap-forward growth.In recent years,the mergers and acquisitions between Internet enterprises,whether from the amount of mergers and acquisitions or the number of mergers and acquisitions,have maintained a rising trend,and the industry is also paying more and more attention to the motivation behind the frequent mergers and acquisitions of Internet enterprises and the effects after mergers and acquisitions.Therefore,this paper selects Alibaba's merger and acquisition of ele.me as a typical case,and deeply analyzes the motivation of Alibaba's merger and acquisition and the effects of the merger and acquisition.First of all,this paper summarizes and classifies the relevant literature on M &A motivation and M & An effect,and defines the concept of Internet enterprise and M & A,forming a solid theoretical foundation.Secondly,the traditional enterprises and Internet enterprises in China are compared and analyzed from the two aspects of M & A status and M & A motivation,and the M & A motivation of Internet enterprises based on industry characteristics is obtained.Then,aiming at the typical case of Alibaba's merger and acquisition of ele.me,this paper introduces the case from the aspects of M & A,M & A process and M & A type.Finally,it focuses on the specific motivation and various effects of Alibaba's merger and acquisition of ele.me.In the aspect of M & A motivation,it mainly uses the methods of financial index analysis and non-financial index analysis,from the perspective of Alibaba business unit module,future development requirements,user base.In the aspect of M & An effect,the event research method is used to analyze the market effect of Alibaba's merger and acquisition of ele.me,and Alibaba and ele.me are used to analyze the synergy,strategic development effect and financial effect before and after the merger and acquisition.It is found that the implementation of a series of reasonable supporting measures after mergers and acquisitions can greatly increase their user base;diversified mergers and acquisitions of Internet enterprises can quickly enter the new market,at the same time promote the original business units and new business units to have a good relationship;successful mergers and acquisitions will also have a negative effect in a certain aspect,forming M & A risk.Based on the research findings,it can be seen that Internet enterprises should choose the appropriate M &An object before M & A,enterprises should not only consider the basic elements such as entering the new market and expanding the scope of business,but also consider whether the two sides can achieve the synergistic effect goal of strong business relevance and high resource utilization rate in the future.M & A risks should be considered in an all-round way.Because Internet enterprises themselves have the characteristics of light assets,many uncertain factors,unique capital flow and so on,the risks arising in mergers and acquisitions will be much higher than those of other enterprises.After mergers and acquisitions,it is the biggest challenge for both parties to maximize the utilization of resources after mergers and acquisitions.