Research On The Synergy Effect Of Alibaba’s Acquisition Of Kaola

Since the 21st century,with the rapid development and continuous innovation of Internet technology,my country has ushered in the information age,and the impact of science and technology on people’s lives has been deepening.In this era,Internet companies have risen rapidly,and industry giants such as Alibaba and Tencent have emerged.At the same time,companies such as JD and Pinduoduo have continued to appear to challenge the dominance of Alibaba and Tencent,and competition in the Internet market has more intense.In order to stabilize their position in the industry and enhance their market competitiveness,many Internet companies choose mergers and acquisitions to expand their business scale and enhance their corporate value,thereby promoting their long-term development.However,the sign of successful mergers and acquisitions is not simply to complete the mergers and acquisitions,but to integrate resources after the mergers and acquisitions,and obtain synergies in management,operation,finance,etc.,in order to seek to achieve the "1+1>2" synergy effect.However,in recent years,in order not to threaten their market position,some Internet companies have abused their market advantages to continuously acquire emerging small and medium-sized enterprises with development potential,and after the acquisition,they have closed down these enterprises and chose to stifle their competitors in the bud.stage to maintain its own market competitiveness.Obviously,these mergers and acquisitions are all failures,not only did not play a role in promoting the development of their own enterprises,but also damaged the fair competition and innovative development of the market.Therefore,this thesis selects the successful case of Alibaba’s acquisition of Kaola in 2019,analyzes Alibaba’s merger and acquisition of Kaola by evaluating synergies,and further discusses the synergy in merger integration,which is conducive to understanding the Internet industry.It is hoped that it can provide certain references and suggestions for future merger and acquisition cases in the Internet industry,so as to effectively promote the healthy development of China’s Internet industry.This thesis uses the case study method to select the event of Alibaba’s acquisition of Kaola to study the synergistic effect of this merger.First,the research background,research significance and theoretical basis are expounded to provide theoretical support for the subsequent analysis.Secondly,analyze the current situation and characteristics of mergers and acquisitions in the Internet industry,introduce the basic situation of both parties in the case,and analyze the motivation of the merger.Then,the event research method is used to analyze the synergy effect from the reaction of the stock market,based on the entropy value method to reveal the source of the synergy effect of this merger and acquisition and calculate the contribution of each index to the synergy effect,and then use the financial index method to contribute to the synergy effect.The indicators with higher degree of degree are analyzed in detail,and the corresponding data of JD,a top-ranking enterprise in the same industry,is used for horizontal comparison.Then,based on the EVA model,the financial indicators are adjusted to make the evaluation angle of the synergy effect of this merger more comprehensive.Finally,the research conclusions are obtained,and the improvement suggestions for future mergers and acquisitions in the Internet industry are summarized:starting from the government,we should improve the relevant laws of Internet enterprise mergers and acquisitions,strengthen anti-monopoly supervision on Internet mergers and acquisitions,and establish a social coordinated development governance structure system;starting from the enterprise,should choose the M&A target correctly,focus on the integration of post-merger resources and comply with national laws and regulations;starting from investors,should actively participate in corporate governance;starting from intermediaries,should be proficient in the operation process of mergers and acquisitions,and work together to improve the mergers and acquisitions of Internet companies In order to achieve the synergistic effect of mergers and acquisitions and promote the orderly development of the Internet industry.