Analysis on the Impact of Tencent’s Acquisition of Riot Game

With the continuous development of the world economy, the game industry has become the most potential industry. The development of the game industry has led to a surge in cross-border merger and acquisition activities of game companies. The purpose of this study was to explore the impact of Tencent Games’ acquisition of Riot games on the company and domestic and foreign markets. This paper used the Weston Synergy Theory to explore the greater effect brought by the M&A of Tencent, and chose the SWOT model to qualitatively analyze its impact. This study concluded that this M&A activity may harm Tencent in the short term, but in the long run, it can improve Tencent's enterprise efficiency and market competitiveness. Through the acquisition of Riot's core technology, it can improve the enterprise structure and achieve economies of scale, resulting in a large number of beneficial effects. Therefore, by analyzing the positive impact of this acquisition, summing up the experience of cross-border mergers and acquisitions of game companies, it is helpful to guide other game companies to carry out cross-border mergers and acquisitions, which has a certain practical significance. However, based on the market particularity and policy support of this M & A, the guiding significance of other forms of M & A needs to be further discussed.