Published , by Morgan Shaver
Published , by Morgan Shaver
In an announcement on Tuesday, Alibaba (BABA) revealed plans to split the company into six different groups, with each group having the ability to go public. Each group will also be managed by its own individual CEO and board of directors. Alibaba’s new groups include: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group, and Digital Media and Entertainment Group.
Alibaba CEO Daniel Zhang will head the Cloud Intelligence Group which will oversee the company’s cloud and AI activities. As reported by outlets like CNBC, this split into six groups is the most significant reorganization in the Chinese e-commerce company’s history. According to statements from Alibaba, the move is “designed to unlock shareholder value and foster market competitiveness.”
As noted in CNBC’s reporting, this move also comes after a rough couple of years for Alibaba which has faced slowed economic growth, and approximately $600 billion in value wiped from its share price since its price peak in October 2020. Alibaba has also incurred expenses such as a $2.6 billion fine in 2021 as part of an antitrust probe. Moving forward, Alibaba views the creation of six businesses as a way to be more agile and enable faster responses to market changes.
“This transformation will empower all our businesses to become more agile, enhance decision-making, and enable faster responses to market changes,” said CEO Daniel Zhang in a statement.
For more on Alibaba’s move to split into six groups and further details on each group, be sure to read through reporting from outlets like CNBC. Also brush up on some of our previous coverage, including Alibaba (BABA) shares jumping on word of the company designing a ChatGPT rival, and GameStop Chairman Ryan Cohen buying stake in Alibaba (BABA) and pushing for buybacks.