Struggling Alibaba to split into six units, explore IPOs
Alibaba Group Holding Ltd., which has faced a crackdown from authorities and suffered a slump in business, is reportedly planning to split its business into six main units covering e-commerce, media, and the cloud.
The company said on Tuesday that each of the units will explore fundraising or initial public offerings.
According to the firm, those six units will include the 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 Daniel Zhang and the board of directors. Zhang will continue to double up as chairman and CEO of Alibaba Group, which will follow a holding company management model, a statement issued by the company said.
Zhang will also continue as CEO of Cloud Intelligence Group, as previously announced. The reports of restructuring surfaced a day after Alibaba founder Jack Ma made a public appearance in mainland China after more than a year at a primary school in Hangzhou.
Ma was forced to leave China in late 2021 after authorities launched a regulatory crackdown on the country's tech sector.
Ma's choice to stay abroad came to symbolise a reversal of fortunes for China's private sector after his empire and the technology industry were targeted by Beijing's regulatory authorities.