Alibaba plans to split its business into six units, explore IPOs
1 min read 28 Mar 2023, 03:43 PM ISTThe six units will include Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group
PremiumAlibaba Group Holding Ltd on Tuesday said that it is planning to split its business into six main units covering e-commerce, media and the cloud, , adding that each of the units will explore fundraising or initial public offerings, reported Reuters.
US listed shares of Alibaba rose 3.5% in trading before the bell.
The six units will include Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group.
Each of the six will be managed by its own CEO and board of directors, reported Reuters.
Daniel Zhang will continue to serve as chairman and CEO of Alibaba Group, which will follow a holding company management model, the company said in a statement.
Zhang will also serve as CEO of Cloud Intelligence Group, as previously announced.
News of the restructuring comes one day after Alibaba founder Jack Ma was spotted at a primary school in Hangzhou, marking his first public appearance in mainland China in over a year.
Ma left China in late 2021 just as authorities launched a regulatory crackdown on the country's tech sector.
Ma's stay abroad came to symbolise a reversal of fortunes for China's private sector after his empire and the technology industry were the targets of Beijing's regulatory crackdown.
This story has been published from a wire agency feed without modifications to the text.
