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Research on the Acquisition of Pico by Byte Dance

In: Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)

Author

Listed:
  • Yingcong Liu

    (Sun Yat-Sen University, Department of Tourism Management)

  • Xinran Ma

    (Shanghai Lixin University of Accounting and Finance, Department of International Economics and Trade)

  • Sihan Yan

    (Shanghai Weiyu High School)

Abstract

Internet companies have been scrambling to grab the market since the craze of the metaverse began. To compete for the lead, Byte Dance invested heavily in VR in the past years and acquired Pico on August 29, 2021. This paper investigated the effect of the conglomerate acquisition on the acquirer. The purpose of this study was to explore how has Byte Dance been affected by this acquisition and explain how Byte Dance touch the metaverse by the acquisition. This paper mainly used the conglomerate merger and acquisition theory and SWOT model. According to the research, the acquisition not only brought many competitive advantages to Byte Dance, but also enabled Pico and Byte Dance to gain huge profits in the short term and helped Byte Dance to further occupy the exploration of the metaverse. Meanwhile, Byte Dance’s huge acquisition payments have put financial pressure on it and affected its capital chain. Enterprise integration will be a difficult process. This paper recommends that Byte Dance and Pico both plan for their futures. Byte Dance should increase its investment in technology research and development, face up to its disadvantages and make continuous improvements while making reasonable use of its advantages. However, the future development and operation of both parties after the merger still need to be expected and further planned.

Suggested Citation

  • Yingcong Liu & Xinran Ma & Sihan Yan, 2022. "Research on the Acquisition of Pico by Byte Dance," Advances in Economics, Business and Management Research, in: Yushi Jiang & Yuriy Shvets & Hrushikesh Mallick (ed.), Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), pages 1265-1271, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-036-7_187
    DOI: 10.2991/978-94-6463-036-7_187
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