Alibaba is splitting itself into into six business groups as the Chinese e-commerce company attempts to become more nimble in reacting to changes in the market and increase the value of those units.
Shares of Alibaba Group Holding Ltd. jumped 8% at the opening bell.
Alibaba Group Holding Ltd. said in a regulatory filing Tuesday that the six new groups will be made up of the Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group.
The company said that each group will be able to raise outside capital and potentially seek its own initial public offering, except for Taobao Tmall Business Group, which will stay wholly-owned by Alibaba Group. Each group will be independently managed by its own CEO and board of directors.
The Cloud Intelligence Group includes cloud, AI and DingTalk. The Taobao Tmall Business Group includes Taobao, Tmall, Taobao Deals, Taocaicai and 1688.com. The Local Services Group includes Amap and Ele.me, while the Global Digital Business Group (including Lazada, AliExpress, Trendyol, Daraz and Alibaba.com. The Digital Media and Entertainment Group includes Youku and Alibaba Pictures.
Alibaba has faced increased competition from short-video platforms such as Douyin and Kuaishou which also offer e-commerce services on their platforms. Its U.S.-listed stock has also been on the decline since a regulatory crackdown on the technology industry in November 2020 that saw regulators halt the IPO of its financial arm Ant Group and crack down on anticompetitive practices across the technology industry.
On Monday Alibaba founder Jack Ma resurfaced in China after months of overseas travel. Ma founded Alibaba in the 1990s and was once China’s richest man. He has kept a low profile with few public appearances since Nov. 2020, when he had publicly criticized China’s regulators and financial systems during a speech in Shanghai.
The Chinese government has been seeking to raise confidence in the private sector after regulatory crackdowns, on technology, education, online gaming and financial companies, and harsh COVID-19 restrictions slowed the economy.
Ma stepped down as Alibaba chairman in 2019, saying he hoped to focus on philanthropy. In January, he ceded control of Ant, the financial technology firm, amid a revamp of its shareholding structure.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
Seth Schachner breaks down Zootopia 2’s record-smashing debut, holiday box office trends, early 2026 Oscar contenders, and what’s next for Netflix and WBD.
