Alibaba announced on Tuesday that it is going to divide into six distinct business groups. Which is one of the most important changes to a leading Chinese technology firm to date.
According to Daniel Zhang, the company’s chairman and CEO, the restructuring will allow each business to pursue its own funding and public listing plans.
At 24 years of age, Alibaba is welcoming a new opportunity for growth,” said CEO Daniel Zhang.
Alibaba Group Holding Ltd. intends to divide its $220 billion company into six major divisions. Which includes e-commerce, media, and cloud computing. Each of which will consider fundraising or initial public offerings when the time comes.
Daniel Zhang will lead the cloud intelligence division. Indicating the increasing importance of artificial intelligence in the e-commerce leader’s portfolio in the long term.
Jiang Fan, a former international retail executive, will lead the digital business section. While Trudy Dai will oversee the main Taobao Tmall online shopping division. Local services such as meal delivery, the Cainiao logistics company, digital media and entertainment are among its other divisions.
Following a move by its founder, Jack Ma, to relinquish control of subsidiary Ant Financial after the government effectively stepped in to scrap its planned $37 billion IPO in late 2020. Alibaba may also find itself free of political influence. Ma, in reality, made his first appearance in mainland China in nearly two years yesterday. When he was spotted at a primary school in Hangzhou, northeast of Beijing.
In pre-market dealing, Alibaba’s US-listed shares were marked 7.75% higher, indicating an opening bell price of $92.80 per share.
Billionaire meme-stock legend Ryan Cohen, who built a multi-million stake in Asia’s largest tech firm early this year, could benefit greatly from the split.