| Since 2015,China’s music copyright awareness has gradually increased,and the number of mergers and acquisitions between digital music platforms has been on the rise,with the amount of deals and the scale of deals increasing.And looking at the whole Internet industry,the success rate of which is only one-third.Under such circumstances,strengthening the awareness of M&A synergies,improving M&A synergies,and reducing M&A risks have become issues that need to be studied in order to truly maximize shareholders’ interests and corporate value,as well as to improve market competitiveness,and achieve the long-term development of the Internet industry.In addition,the market power caused by the M&A of enterprises may bring the risk of industry monopoly.With the implementation and revision of the Anti-Monopoly Law of the People’s Republic of China,judging the impact of major M&A events on market power has become a crucial issue that deserves academic attention.By studying the market power of Internet platform-type enterprises,we can better measure the benefits gained by the platforms by taking advantage of competitive monopoly and provide reference for other enterprises to reasonably conduct M&A activities.This thesis takes the case of TME,a leading digital music platform,expanding its market power through M&A as the research object.The thesis then analyzes the path of TME’s market power expansion through M&A and evaluates the effect of M&A on market power expansion,and finally draws conclusions and insights from this thesis.This thesis aims to further enrich the research on the expansion of market power of digital music platform companies through M&A,and provide useful references for the Internet industry,especially for digital music platforms to expand their market power through M&A.The study finds that among the series of M&A activities of TME,horizontal M&A is more conducive to its market power,and the effect of its M&A activities on market power is time-sensitive,and the degree of market power of Internet platform enterprises is vulnerable to regulatory policies.In terms of market power composite index,it shows that the HHI index increases and the EI index decreases after horizontal M&A,and the market power increases significantly.In terms of economy of scale effect,it shows that M&A helps enterprises gain bargaining power in the market,increase user activity and paying users,thus operating revenue increases and operating profit margin rises.In terms of marketing synergy effect,it shows that the enterprises’ market share increases and the coverage rate of music copyright and exclusive music copyright is high.In terms of management synergy effect,it is manifested in the reduction of selling expense ratio and management expense ratio,and management synergy is achieved after the merger.Therefore,in the stock competition stage of digital music platforms,platform companies must pay attention to the synergy effect that M&A can bring,adopt the optimal M&A approach to optimize the allocation of corporate resources,and do a good job of internal integration after M&A.At the same time,it is important to take TME’s violation of the Anti-Monopoly Law as a warning and conduct inter-company M&A in a reasonable and compliant manner to jointly promote the healthy and orderly development of digital music platforms. |
