Research On The Risk Of Cross-border M&A In Internet Enterprises

At this stage,the economy of various countries has developed rapidly.In order to expand the scale and further develop,M&A activities have also become more frequent.In the M&A event,many scholars have paid more attention to cross-border mergers and acquisitions.Cross-border mergers and acquisitions means that the companies of the merger and acquisition activities belong to different countries or regions.There are many factors to consider and the risks encountered are even more complicated.In recent years,the scale of cross-border mergers and acquisitions has continued to increase,the number has continued to increase,and the amount of M&A deals has also grown.However,as the number of mergers and acquisitions increases,many problems have gradually emerged.It is worth noting that companies often pay attention to the benefits they bring in mergers and acquisitions,while ignoring the various factors brought about by uncertainties in mergers and acquisitions.Kind of risk.If an enterprise cannot fully identify the risk in the M&A process and select appropriate preventive measures,the enterprise may not only fail to achieve the objectives of improving business performance and expanding the scale,but also cause the company to suffer losses.Because cross-border mergers and acquisitions are more complex than ordinary mergers and acquisitions,risk factors are related to the development of the two countries or regions in addition to mergers and acquisitions,so if you want to complete the goal of cross-border mergers and acquisitions,companies must correctly identify and evaluate the process of cross-border mergers and acquisitions The risks and take some control measures.In 2011,Tencent Enterprises announced that it had acquired Riot Games,a US game developer,and that the acquisition cost a total of 1.679 billion RMB.This cross-border M&A event also enriched the acquisition of the Internet industry.Tencent's cross-border mergers and acquisitions of Riot Games have enabled it to take a firm foothold in foreign markets,expand its market share,and allow Chinese Internet companies to have more say in the world market.However,Tencent has encountered many risks in its cross-border mergers and acquisitions process,such as the policy risks arising from the policies of the two countries,the legal risks arising from the laws of the two countries,and a series of risks arising from financing,exchange rate,payment,and integration.These risks will affect Tencent's cross-border M&A results.In this acquisition event,Tencent's company is also very cautious about the risk of mergers and acquisitions,and it is worth studying.This article analyzes and combs Tencent's cross-border M&A Riot Games process through the collection of research and literature on cross-border mergers and acquisitions risk both at home and abroad,and restores its acquisition process,from the perspectives of core technology,market share,corporate resources,and brand influence.Analyzed the motivation of Tencent's cross-border mergers and acquisitions.According to the relevant theories of cross-border mergers and acquisitions risk,we analyzed Tencent's risks in cross-border mergers and acquisitions,and analyzed these risks in detail from the three periods before,during,and after the merger,and assessed the value of mergers and acquisitions using the Z-value model.Financial risk.Based on the above analysis and discussion,this paper concludes:First,Tencent has encountered many risks in cross-border mergers and acquisitions of Riot Games.There are many types of risks,but Tencent risks can be basically controlled after F value model monitoring.Second,Tencent has taken certain measures to avoid and control the financial risks of the merger and acquisition.These measures have effectively controlled Tencent's merger and acquisition risks.Third,according to Tencent's experience,companies in the Internet industry must pay attention to the prevention and control of cross-border M&A risks in cross-border mergers and acquisitions.