Analysis of Merger & Acquisitions Motivation and Post Performance of Internet Corporations in China——A Case Study of Youku Merger with Tudou

DOI

10.2991/isbcd-18.2018.27How to use a DOI?

Keywords

China Internet company; M&A; M&A performance

Abstract

With the maturity of China's Internet industry, the Chinese Internet industry has entered a new wave of mergers and acquisitions. This study takes the merger and acquisition case of the two largest online video companies in China as an example, Youku and Tudou. Its goal is mainly to analyse the motivation and performance of the Internet companies’ merger. In this study, cumulative abnormal return (CAR) is mainly used as a measure of profitability. The results show that as of the date of the merger announcement, Youku's CAR keeps at a positive value. The market responded positively to Youku merge with Tudou, showing a positive short-term effect. The study concludes that the motives for Chinese Internet companies' mergers and acquisitions are still focused on increasing market share and achieve synergy.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Ziyu Huang
AU  - Xiaojiao Ye
PY  - 2018/10
DA  - 2018/10
TI  - Analysis of Merger & Acquisitions Motivation and Post Performance of Internet Corporations in China——A Case Study of Youku Merger with Tudou
BT  - Proceedings of the 3rd International Symposium on Asian B&R Conference on International Business Cooperation (ISBCD 2018)
PB  - Atlantis Press
SP  - 132
EP  - 137
SN  - 2352-5428
UR  - https://doi.org/10.2991/isbcd-18.2018.27
DO  - 10.2991/isbcd-18.2018.27
ID  - Huang2018/10
ER  -