According to the firm, Alibaba Group intends to divide into six units. As China loosens its restrictions on private firms, various organizations will search for financing opportunities and market listings.
The Six Separate Companies
As a result of the major reorganization formed is:
- Cloud Intelligence Group (cloud solutions)
- Local Services Group (delivery services)
- Taobao Tmall Commerce Group (local online commerce services)
- Global Digital Commerce Group (AliExpress)
- Cainiao Smart Logistics Group (logistics)
- Digital Media and Entertainment Group (gaming, movies, and web services).
Why is Alibaba Planning for the Restructure?
The news comes one day after Jack Ma returned to China. In addition, the news can be a sign that Beijing is becoming more accommodating to private businesses. Since being singled out by regulators, Alibaba has been the subject of intense investigation over the past two years.
Also Read: https://thecitizenscoop.com/google-announced-a-new-feature-for-google-search/
According to Chief Executive Daniel, the goal is to make the company “more agile, shorten links to decision-making, and more responsive.” He will continue to serve as chairman and CEO of Alibaba Group. Additionally, it will adopt a new management structure known as a holding company.
The CEO and board of directors of each of the six firms will have the authority to raise money from sources other than the parent company. However, as an exception, Alibaba Group will own the Taobao Tmall Commerce Group.
According to analysts, the restructuring is an effort to soften the stance of US authorities and foreign investors. Days, after Li Qiang was named China’s premier, Jack Ma’s trip to the country may have been intended to reassure local business owners that China’s tech crackdown is coming to an end.
