Study On The Motivation And Performance Of Alibaba’s Merger And Acquisition Of Netease Kaola

With the rapid rise of cross-border e-commerce industry,more and more e-commerce enterprises want to join and occupy the market.The competition among e-commerce enterprises is becoming more and more fierce.Many enterprises choose to cope with the fierce market competition by means of mergers and acquisitions.However,due to lack of experience,the expected effect is often not achieved.In the past,there have been few in-depth studies on this issue.This paper studies the case of Alibaba’s acquisition of Net Ease Kaola.According to the research,there are four main motivations for Alibaba’s action:in order to maintain its competitive edge in the fast-developing cross-border e-commerce industry;in order to enhance their own strength to defend the competitors;In order to exert synergistic effect and form resultant force;in order to promote the implementation of three digital economy strategies.There are two main reasons for Kaola’s acceptance of merger and acquisition:the fierce competition in the industry makes it difficult for Kaola to make profits;in order to alleviate the financial pressure and optimize the enterprise strategic structure.By analyzing the motivation of M&A,the cause and purpose of M&A become clearly and lay a foundation for evaluating whether the M&A performance achieves the target of the enterprise.Based on the balanced scorecard analysis of M&A performance,it is found that Alibaba has improved its solvency and operating capacity,expanded its market share,improved its brand value,and consolidated its leading position in the field of cross-border e-commerce;Alibaba improved the operation process,management efficiency and the quality of employees;in addition,the three digital economy strategies of Alibaba have been promoted in different degree after the merger.