According to a report from Reuters, the Alibaba Group has plans of restructuring into six separate units to seek fundraisings and market listings.
The announcement comes after Jack Ma’s return to China after the country’s softer approach towards private businesses.
Alibaba Group Split
The split will see the company into these six entities:
- Cloud Intelligence Group (cloud solutions)
- Taobao Tmall Commerce Group (local online commerce services)
- Local Services Group (delivery services)
- Cainiao Smart Logistics Group (logistics)
- Global Digital Commerce Group (AliExpress)
- Digital Media and Entertainment Group (gaming, motion pictures, and web services)
Daniel Zhang, company chairman and CEO, in a letter to the staff, mentioned that the intention is to make the organization “more agile, shorten decision-making links, and respond faster”. He also clarified that he will still maintain his role at the Alibaba Group, which will now have a new role as a holding company management model.
The six entities will have their own CEOs and board of directors, being able to raise capital outside of the umbrella company. However, the Taobao Tmall Commerce Group will remain entirely owned by the Alibaba Group.
The restructuring, according to analysts, is a step to soften the approach to US regulators and international investors.
Ram found his love and appreciation for writing in 2015 having started in the gaming and esports sphere for GG Network. He would then transition to focus more on the world of tech which has also began his journey into learning more about this world. That said though, he still has the mentality of "as long as it works" for his personal gadgets.
