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For Alibaba, Six Is Bigger Than One—And a Smaller Target

2 min read 29 Mar 2023, 06:13 PM IST The Wall Street Journal

There are good reasons to think a split-up Alibaba would be more valuable. In this case, politics and profits are pointing in the same direction.

FILE - The logo of Chinese technology firm Alibaba is seen at its office in Beijing, Tuesday, Aug. 10, 2021. Alibaba is separating the company into six business groups as it looks to react faster to market changes and increase their value. Alibaba Group Holding Ltd. said, Tuesday, March 28, 2023, in a regulatory filing that it will be split into the Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group. (AP Photo/Mark Schiefelbein, File) (AP)

Six is bigger than one. Simple arithmetic, but that’s also the market verdict for Alibaba’s plan to split itself into six units. The market may or may not have it right on the nitty-gritty numbers—but the political dividend could be just as important.