Motivation And Risk Analysis Of Mergers And Acquisitions Of Mobile Games Companies

The mobile game industry is a new industry driven by the rapidly growing Internet industry.With the popularity of mobile network 4G services and the arrival of the 5G era,emerging mobile gaming companies are increasingly appearing in people's perspectives and are gradually becoming mainstream industries.The mobile game industry has been transitioning from the growth phase of the industry to a period of rapid development.This means that,like other traditional industries,mergers and acquisitions of segmented industries have begun to take place during this period of industry development.In the other segments of the mobile Internet market,there have been a number of representative mergers and acquisitions cases:the merger of Didi and Uber,the merger of 58 cities and Goji.,the merger of Alibaba.com,Ctrip.com,Elong,and Alibaba.com.Although these merger cases have eased the operating dilemma that the company encountered at the time,the rapid mergers and acquisitions left many hidden troubles for the long-term development of the company in the future.This article takes Zeus Entertainment's continuous M&A behavior as a case,and uses the theories of merger and acquisition motives and M&A risk management to study the starting points of the continuous M&A behavior of the Zeus Entertainment series and various risks that may adversely affect the business operations.The article first analyzes the development of the mobile online game industry,the development history of this emerging industry,the industry chain,and the status quo of mergers and acquisitions.Secondly,from the perspective of Zeus Entertainment,the company analyzes the merger and acquisition motives from the perspectives of management synergy and business synergy.Then,in combination with publicly disclosed information and specific financial data,Zeus Entertainment analyzes the risks of this merger and acquisition event from eight aspects of market operations,goodwill,information asymmetry,research and development capabilities,laws,and policies.Through the analysis,it was found that Zeus Entertainment's continuous acquisition and acquisition,despite its rapid expansion of its business landscape and its timely takeover of positions in emerging markets,contributed to the future competition of Zeus Entertainment in the emerging markets of mobile games and the realization of synergy effects.However,the rapid and continuous expansion also brought various risks to the company,including superficial and hidden risks hidden under financial indicators.From the perspective of shareholders' wealth benefits,this is a risky investment.Finally,the paper proposes the following suggestions for the risk prevention of M&A behaviors in the mobile game industry:prudently formulate strategies for investment and acquisitions,carefully compare the degree of merger between the target of mergers and acquisitions,and attach importance to orderly integration after mergers and acquisitions;attach importance to the analysis of financial risks in mergers and acquisitions,make decisions with a forward-looking approach;do not rush to seize market share,and focus on improving product quality.,Steady development.I hope this article's analysis and research can provide a reference for the healthy development of the mobile online game industry and other emerging mobile network segmentation industries.