2023-03-29
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.
