Research on the Acquisition of Pico by Byte Dance

Yingcong Liu, Xinran Ma and Sihan Yan
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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

A chapter in Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022), 2022, pp 1265-1271 from Springer

Abstract: 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.

Keywords: Byte Dance; Pico; Merger Acquisition (search for similar items in EconPapers)
Date: 2022
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DOI: 10.2991/978-94-6463-036-7_187

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