The Motives and Performance Analysis of Alibabas Acquisition of Ele.me

Chinese internet companies are accelerating their internationalization, and corporate mergers and acquisitions (M&A) have become a key strategy for international expansion. This article uses Alibaba as a case study, employing an event study method and supplemented by financial indicators to analyze the motives and performance of its acquisition of Ele.me. The research results show that the cumulative excess return over the ten days before and after the acquisition in 2018 was positive, indicating that Alibabas shareholders gained substantial returns from the acquisition and achieved positive market performance. In todays increasingly competitive global market, more companies may adopt similar strategies to gain vast market space and enhance their competitiveness. Therefore, the data analysis results provide valuable insights for other internet companies looking to improve their operational performance and productivity through mergers and acquisitions.