| At present,the good development momentum of the Internet industry has attracted a lot of capital to join,leading to increasingly fierce competition among enterprises in the industry.In addition,Internet companies have the characteristics of initial capital accumulation in a single field,and then enter multiple subdivisions in the Internet industry,and then expand their own sectors.Over the years,Internet companies carry out mergers and acquisitions in the industry frequently.But this kind of merger and acquisition phenomenon is easy to form a monopoly in the industry,which has a bad influence on the development of the industry.In order to prevent such an outcome,China’s State Administration for Market Regulation has taken frequent measures against Internet companies in recent years.On November 10,2020,the State Administration for Market Regulation issued the Anti-Monopoly Guidelines on the Field of Platform Economy(Draft for Comments),which strictly controlled the investment and mergers and acquisitions of Internet companies and suspended or punished many mergers and acquisitions in the Internet industry.And for the first time,the VIE structure of Internet companies under the scope of antitrust merger review.In addition,in recent years,due to the close attention of foreign short sellers on US-listed Chinese enterprises and the increasingly severe foreign market environment,the value of US-listed Chinese enterprises has been seriously undervalued,and many of these companies choose to return from the US delisting.Under the domestic anti-monopoly framework,how to take advantage of the return of Chinese Internet companies listed in the United States to increase enterprise value has become an urgent problem to be solved in the industry.This paper selects the case of T Company’s merger and acquisition of S Company,which can still obtain unconditional approval from the State Administration for Market Regulation after the release of the Anti-Monopoly Guidelines on the Field of Platform Economy(Official draft)in 2021,to study the merger motivation and effect of T Company.In this case,T Company and S company belong to the Internet industry,and S Company was a Chinese enterprise listed in the United States before the merger and acquisition.Firstly,in order to provide theoretical support for the following paper,this paper expounds the relevant researches of domestic and foreign scholars on M&A,as well as the concepts and theoretical basis involved in this paper.Secondly,it analyzes the development status of the domestic Internet industry and the current situation of horizontal mergers and acquisitions,confirming that the development of the domestic Internet industry has encountered a bottleneck at the C end,which is in urgent need of transformation to the B end,and the horizontal mergers and acquisitions of Internet companies have been severely hit.Thirdly,based on the case of T Company’s acquisition of S Company,this article analyzes the motives for T Company’s acquisition,and concludes that the reasons for this acquisition case’s unconditional approval by the State Administration of Market Supervision are: the increasingly severe business situation of S Company,the improvement of T Company’s ecosystem,and the assistance of T Company’s To B transformation.Then,based on the data,this paper explores the impact of M&A on T Company from three aspects: stock value,book value and intrinsic value.Through case study and analysis,this paper draws a conclusion from the motivation of merger and acquisition that this merger and acquisition behavior will not cause a new monopoly in the Internet industry segmentation,so it can obtain the unconditional approval of the market supervision administration.By analyzing the influence of the merger and acquisition,it is concluded that the positive effect of the short-term value generated by the merger is not obvious,while the long-term positive effect is obvious and mainly serves the development of the future long-term strategy.Based on this,five suggestions are proposed to conform to national policy orientation,have sufficient financial support,target selection centering on enterprise strategy,fully understand the target company,and pay attention to the impact of intrinsic value.The hope is to provide references for domestic Internet companies that want to take advantage of the return tide of Chinese Internet companies listed in the United States under the framework of anti-monopoly,and enhance enterprise value through horizontal mergers and acquisitions. |
