What challenges does the merger of Baidu Literature and Shengda Literature face?

Answer 1

The merger of Baidu Literature and Shengda Literature may face the following challenges:

1. competitive pressure: both tencent literature and shanda literature are giants in the Chinese literature market. After the merger, they may face challenges from other competitors such as ali literature and baidu literature.

2. The copyright issue: The copyright of literary works is a very sensitive issue. If the two parties cannot properly resolve the copyright issue after the merger, it may lead to copyright disputes.

3. Cultural policy: Cultural policy plays a vital role in the development of the Chinese literary market. If the policy environment after the merger is unclear, it may affect the company's business development.

4. Brain drain: After the merger, the company may lose some excellent employees because they may choose to leave the company to seek better development opportunities.

5. Market share allocation: After the merger, the company may face the problem of market share allocation. Both of them had very large market shares in their respective markets. How to allocate these market shares might become a problem for the company to consider.

The merger of the two companies might face some challenges, but it was also an opportunity for both companies. By merging the two companies, they could better integrate their respective resources and advantages to jointly promote the development of the Chinese literature market.