Enterprise Value Assessment for Digital Mergers and Acquisitions

In recent years, the rise of the Internet industry and the increasing level of information technology have led to an increase in mergers and acquisitions (M&A) between digital music platforms. However, looking at the overall M&A behavior, successful M&A cases still account for a small number of cases, and academics pay more attention to how to avoid the monopoly risk after the enterprise conducts M&A behavior, and less research on the M&A behavior of the enterprise itself. Therefore, in this environment, how enterprises can enhance synergistic ability and increase enterprise value through digital M&A has become an important research topic. Based on synergy effect theory and signaling theory, this paper selects Tencent Music, a leading Internet company, as the research object of digital merger and acquisition; analyzes the financial data of Tencent Music in the past six years through relevant data; and evaluates the enterprise value of the enterprise after the digital merger and acquisition through case study, combined with relevant data, and evaluates the effect of the merger and acquisition. The purpose of this paper is to analyze the digital M&A behavior of Tencent Music to provide some digital M&A references for Internet enterprises, especially digital music platforms. The above research, for investors, can help investors better choose potential development objects; for platforms, a reasonable evaluation basis can help enterprises better make investment decisions and provide scientific data indicators for whether they should carry out digital mergers and acquisitions; for the industry as a whole, it is conducive to the whole industry to seize the new round of opportunities brought by digital mergers and acquisitions, which will help China's digital music platform market. It will help digital music platform market to develop in a healthy and stable direction.