The Consequences of Mergers, Acquisitions and Strategic Alliances in the Internet search and Navigation Services Industry: Case studies of Google and Yahoo!

Yiu, Hoi Man (2010) The Consequences of Mergers, Acquisitions and Strategic Alliances in the Internet search and Navigation Services Industry: Case studies of Google and Yahoo! [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This paper is focussed on finding motives and assessing the consequences of mergers,

acquisitions and strategic alliances of two dominant players in the search engine industry –

Google Inc. and Yahoo! Inc. It overviews a vast amount of theoretical literature on the companies’ incentives to engage in mergers’, acquisitions’ and strategic alliances’ and presents empirical literature financial findings of the company and its stock market’s post-merger performance. Case studies section of the dissertation examines the history and

motives of Google and Yahoo! for engaging in such events, and measures the consequences of this activity by applying accounting and empirical financial approaches. Qualitative data is obtained from both online and published resources; the findings are that:

Quantitative data is taken from the companies’ annual reports, business research companies’ archives and financial website, Yahoo! Finance.com. The empirical models test four hypotheses, which concern the companies’ financial and stock market performance. The findings of these models can be summarised as follows:

1. Mergers, acquisitions and strategic alliances can have either positive or negative effect on the companies’ financial performances.

2. Mergers and acquisitions have either negative or close to zero effect on the companies’ stock market’s performance.

3. If strategic alliances are specified into marketing and technological alliances, the impact of both types on the companies’ stock performance varies.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 18 Jan 2011 15:40
Last Modified: 01 Nov 2016 19:48
URI: http://eprints.nottingham.ac.uk/id/eprint/24135

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