Motivation And Performance Analysis Of Internet Game Enterprise Merger And Acquisition

Amidst the rapid growth of China’s economy and the evolution and modernization of its industrial structure,conventional businesses have encountered heightened competition and are actively pursuing breakthroughs and transformations.Concurrently,with the emergence of the global sixth wave of mergers and acquisitions,the domestic M&A market is expanding.In conjunction with the widespread adoption of the internet and the swift development of communication technology,numerous enterprises are opting to metamorphose into internet companies via M&A activities to bolster their competitiveness.Against this backdrop,this paper concentrates on Caesar Culture as the subject of study and scrutinizes the motives and performance of its M&A behavior in the internet gaming industry through its acquisition of Youkia.Employing Caesar Culture’s cross-industry M&A of Youkia,an internet gaming enterprise,as a case study,this paper initially assesses the macro environment and industry environment of internet gaming enterprises and furnishes a comprehensive portrayal of the M&A landscape and its characteristics.Subsequently,predicated on synergy theory,diversified management theory,and agency theory,the paper delineates the course of Caesar Culture’s cross-industry M&A and scrutinizes the driving forces behind it.Finally,utilizing the event study,financial indicator,and EVA indicator methodologies,the paper appraises the performance fluctuations of Caesar Culture after the acquisition.The study leads to the following conclusions: Caesar Culture’s motives for crossindustry M&A are primarily to achieve synergy,realize resource sharing,and achieve talent integration.In terms of performance,Caesar Culture’s M&A performance is generally favorable,This merger indicates that it has enhanced Caesar Culture’s market competitiveness and created value for it.Grounded on Caesar Culture’s successful cross-industry M&A experience,the study provides the following insights:conventional enterprises ought to select M&A targets based on their characteristics and development strategies when executing cross-industry M&A transformations;they should adopt appropriate payment methods based on the size of the acquired company;and they should focus on resource optimization and future-oriented development post-M&A.