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REGULATION
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2 years ago

Alibaba Shares Jump 13% As Alibaba Will Split Into 6 Companies

2023-03-29

REGULATION
by
2 years ago


Alizilla reports on March 28 Alibaba announces that it will be breaking up into 6 different companies. Daniel Zhang will continue his position as Alibaba’s Chairman and CEO. He wants to make Alibaba to be a holding company. Alibaba shares jump 13% in response to the news.

6 Business Groups Include,

1. Cloud Intelligence Group

Daniel Zhang will also be the CEO of Cloud Intelligence Group. It will house all of the cloud businesses both software as a service and infrastructure as a service such as Alibaba Cloud, DingTalk, and artificial intelligence unit.

2. Taobao Tmall Commerce Group

Commerce group will be responsible for Taobao and Tmall. Alibaba’s retail e-commerce platform.

3. Local Services Group

Yu Yongfu will be CEO. Local services business will responsible for Alibaba’s food delivery business Ele.me as well as mapping service and navigation platform called Amap.

4. Cainiao Smart Logistics

Wan Lin will continue as CEO of Cainiao. This business will responsible for shipping and supply chain management for all of Alibaba services both domestic and international shipping.

5. Global Digital Commerce Group

Jiang Fan will be CEO of global commerce business include Aliexpress, Alibaba.com, Lazada, Trendyol, and Daraz.

6. Digital Media and Entertainment Group

Fan Luyuan will be CEO of digital media and entertainment business such as YouKu and Alibaba pictures.

 

Furthermore, Alibaba owns about 33% stake in Ant Group.

 

What is the reason behind Alibaba’s restructuring?    

According to Daniel Zhang, he wants to unlock shareholder value to make the market values each business according to potential of each business group and increase competitiveness and agility for each business group. Each business can independently raise funds on their own and explore the chance for IPOs, except Taobao Tmall Commerce Group, which Alibaba wants to remain an Alibaba Group wholly owned unit.

 

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