Performance analysis of Internet transformation of traditional enterprises-Take LEO for example

Abstract

In the context of "Internet +", traditional enterprises have been transforming and upgrading themselves by mergers and acquisitions of Internet enterprises. Competition in the Internet industry is becoming increasingly fierce, cross-border mergers and acquisitions have greater risks, and the synergy effect of mergers and acquisitions is full of uncertainty. Based on the financial indicators and the z-value warning model, this paper analyzes the M&A performance of LEO shares, and the results show that there is a significant positive effect on the short-term performance, and the performance has a downward trend in the second and third years after the merger, which is related to the traditional enterprise industry competition and the synergy effect of resource integration after the merger.