Why Alibaba Mergers And Acquisitions

While P marvelled at the Alibaba's rapid expansion of its business layout, a series of questions came as follows: is Alibaba moving from an e-commerce company to an industrial investment company? What will the impact of such intensive acquisitions on Alibaba's future be? < /p >

< p > < strong > Alibaba enters the M & a mode < /strong > < /p >.

< p > in the past six months, Alibaba's M & A activities are very frequent. Mergers and acquisitions involve many industries such as Internet, IT, cultural media, logistics and so on. The acquisition targets include high German software, cultural China, unfamiliar street, cool flying online, Singapore Post, Hengda football club, UC excellent, and twenty-first Century media. Among them, the scale of pactions with Youku potatoes, Gao de software and cultural China reached 1 billion 88 million US dollars, 1 billion 100 million US dollars and 6 billion 244 million Hong Kong dollars respectively. The valuation of US $3 billion for UC is considered to be the largest Internet acquisition paction in China.

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< p > it is worth noting that unlike Baidu and Tencent, the merger and acquisition of Alibaba's core businesses are different. Alibaba's M & A can be seen as a comprehensive attack, involving new businesses such as finance, culture, entertainment and health.

Informed sources said that in the coming days, the pace of Alibaba's merger and acquisition will not stop. In addition to the acquisition of more Internet Co, the focus of mergers and acquisitions will gradually shift to areas such as finance, culture, entertainment and medical care, which are not good at Alibaba.

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< p > < strong > create rich a href= "http:// www.91se91.com/news/index_c.asp" > industry chain < /a > /strong > /p >

< p > for large-scale mergers and acquisitions, Alibaba's official explanation is: create a rich industrial chain.

But such an answer is obviously unable to calm the doubts of the outside world.

Especially in the context of Alibaba's coming to the US IPO, Alibaba's massive M & A activities are causing market speculation.

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< p > most industry analysts believe that Alibaba's M & A activities are aimed at consolidating existing advantages and further improving the ecosystem of e-commerce.

Many market participants say that in the context of IPO in the US, mergers and acquisitions will also help Alibaba improve market valuation.

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< p > in fact, Alibaba's M & A activities are still closely related to company strategy.

It is reported that in 2014, Alibaba officially clarified the "cloud + terminal" strategy, that is, based on Alibaba's cloud computing and big data capabilities, through the grafting of various applications, to provide users and businesses with a variety of services.

Judging from the current situation, after the accumulation of data from Taobao and Alipay for a long time, Alibaba's cloud computing and big data capabilities have been "refined into steel". However, compared with Baidu and Tencent, Alibaba still has a big gap in the diversity of applications and services.

Therefore, if Alibaba wants to make the most of the "cloud" capability, it needs to graft more applications to make up for the shortage of "end".

M & A is a good choice for Alibaba who want to get the "end" capability quickly.

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More importantly, the large-scale M & A activities of < a href= "http:// www.91se91.com/news/index_c.asp" > Alibaba < /a > are still following the "relay run" development which has been emphasized by Ma Yun, chairman of the board of Alibaba group P.

He believes that if Alibaba wants to become a century old shop, it needs to constantly find new market demand, engage in new businesses, and take new business as the driving force for future growth of the company.

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Before P, Ma had made clear that B2C business was the first runner in Alibaba's relay race. The second clubs were Taobao and Alipay, the third bar was big data, and fourth rods would be financial, logistics and other businesses.

From a series of mergers and acquisitions of Alibaba, it also followed Ma Yun's logic.

Investing in the rookie network, acquiring the High German map, joining Haier and Yintai, is to expand the traditional e-commerce, and then complete the layout of O2O (online to offline). The acquisition of Hang Seng electronics is undoubtedly consolidating its own internet financial advantages. Investment in everyday life, shrimp music, China media, cultural China, Youku potatoes and Hengda football are a great market prospect for the pan cultural industry.

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< p > from the recent half year merger and acquisition of Alibaba, its fifth rods will be a huge cultural, entertainment and health industry.

Recently, Ma stressed that the above industry will be the focus of Alibaba investment in the future, and may become a new key business of the company in the future.

This means that valuable companies in these fields will become the Alibaba's chasing targets in the future.

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< p > < strong > the success or failure is subject to market test < /strong > < /p >

< p > although a href= "http:// www.91se91.com/news/index_c.asp" > merger and acquisition < /a > is a shortcut for the rapid development of enterprises, the Alibaba's rapid pace of mergers and acquisitions has attracted the conjecture of the outside world.

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< p > in fact, mergers and acquisitions, especially the failure of cross industry mergers and acquisitions, are numerous at home and abroad.

According to incomplete statistics from foreign agencies such as Accenture, the success rate of cross border M & A in foreign countries is less than 50%, even those giants like Google and Microsoft have failed.

For example, Google sold Motorola mobile, and sold its various businesses on a grand scale. It was regarded as the most negative reference material in 2014.

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< p > industry analysts say that in the past, Shanda has been attacking many fields in the same field as today's Alibaba, and has entered many new businesses such as network literature, network video and so on. There are more than 50 mergers and acquisitions companies.

But mergers and acquisitions did not help Shanda become a new Internet giant, but dragged its main game business.

In a few short years, Shanda has sold a number of businesses, including online video.

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< p > despite the high expectations of Alibaba in the new business of mergers and acquisitions, especially in culture, entertainment, finance and health, the market is extremely cautious about the prospects of these new businesses.

A number of US investors' websites said that despite the Alibaba's attempts to enter a large number of new businesses through mergers and acquisitions, the prospects are hard to guarantee.

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< p > from Ali's acquisition targets, including music, culture, football and other businesses are beyond the core e-commerce category of Alibaba. In these areas, Alibaba is not an expert or a lack of experience. Whether or not it can lead in competition is unknown. In addition, some businesses even though the prospect is good, it is not easy to integrate into the existing system of Alibaba.

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