Mergers in the digital economy

Abstract

This thesis examines M&A strategies in the digital economy, focusing on leading Asian corporations (Alibaba, Tencent, Baidu, Samsung, and Sony) during the period from 2010 to 2023, using a probit model for analysis. The findings reveal distinct strategic approaches: these firms tend to prioritize acquisitions within their core business areas, in contrast to the GAFAM's broader focus on diversification into emerging technologies such as AI. The study also identifies that younger startups are particularly vulnerable to discontinuation following acquisition. Furthermore, Tencent and Alibaba demonstrate significantly lower discontinuation rates compared to their counterparts. However, the analysis did not find evidence of anti-competitive practices or identify any specific business sector as being more susceptible to discontinuation.