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Big news for Alibaba today. With founder and largest shareholder Jack Ma returning to mainland China for the first time in a year, Alibaba released a reorg plan to split itself into 6 separate business units which will be managed independently and 5/6 of which may be seek IPOs.
The market likes the news, up ~12% at the moment. Perhaps it will 'unlock value' as they say.
https://finance.yahoo.com/news/1-alibaba-splits-si..."
The Chinese e-commerce conglomerate said that the biggest restructuring in its 24 year history would see it split into six units -- Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group
The revamp of the conglomerate comes ... as Beijing looks to spur private sector growth after a two-year-long regulatory crackdown on its showpiece private enterprises.
"The original intention and fundamental purpose of this reform is to make our organisation more agile, shorten decision making links and respond faster," Zhang said in a letter to staff seen by Reuters.
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Daniel Zhang will continue to serve as chairman and CEO of Alibaba Group, which will follow a holding company management model, and concurrently serve as CEO of Cloud Intelligence Group.
Each of the six business groups will be managed by its own CEO and board of directors and will retain the flexibility to raise outside capital and seek an initial public offering, it said.
The exception would be Taobao Tmall Commerce Group that handles its China commerce businesses and will remain an Alibaba Group wholly owned unit.
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