Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)

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The Motivations and Performance Analysis of Cross-Border Mergers and Acquisitions: A Case Study of Tencent’s Acquisition of Sumo Group

Authors
Hangzhi Zhou1, *
1International College, Guangzhou College of Commerce, Guangzhou, 510555, China
*Corresponding author. Email: hz24329@essex.ac.uk
Corresponding Author
Hangzhi Zhou
Available Online 24 February 2025.
DOI
10.2991/978-94-6463-652-9_18How to use a DOI?
Keywords
Cross-Border Mergers and Acquisitions; Market Expansion; Resource Integration
Abstract

In recent years, with the substantial growth of China’s economic power, the government has actively promoted the “going out” strategy, encouraging a growing number of Chinese enterprises to participate in cross-border mergers and acquisitions. Through these mergers and acquisitions, companies can not only take full advantage of both domestic and international markets and resources but also expand their global reach, thereby significantly boosting their international competitiveness. With the globalization of the gaming industry, Tencent Holdings, a leading domestic gaming company, has further strengthened its global leadership by acquiring the British gaming firm Sumo Group. This paper examines Tencent’s acquisition of Sumo Group, analyzing the motivations, process, and financial data. The findings suggest that Tencent’s merger and acquisition activities are primarily driven by market expansion and the desire to enhance its own competitiveness. Following the merger, Tencent achieved economies of scale and synergy through resource integration and market expansion, leading to improved profitability and greater market competitiveness.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
24 February 2025
ISBN
978-94-6463-652-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-652-9_18How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Hangzhi Zhou
PY  - 2025
DA  - 2025/02/24
TI  - The Motivations and Performance Analysis of Cross-Border Mergers and Acquisitions: A Case Study of Tencent’s Acquisition of Sumo Group
BT  - Proceedings of the International Workshop on Navigating the Digital Business Frontier for Sustainable Financial Innovation (ICDEBA 2024)
PB  - Atlantis Press
SP  - 171
EP  - 180
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-652-9_18
DO  - 10.2991/978-94-6463-652-9_18
ID  - Zhou2025
ER  -