Alibaba’s Breakup Shows Global Tech Firms How to Unlock Value

Bloomberg2023-03-29

ADRs soar on plan to split off units into standalone companiesUS tech giants also face higher scrutiny, calls for partitionsA plan to split Alibaba Group Holding Ltd. into six units sent the company’s...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

miker9110
2023-03-30
miker9110
K
Penthon
2023-03-29
Penthon
Up
kong1509
2023-03-29
kong1509
Ok

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2323291290?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-03-29 10:40","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2323291290","market":"us","top_or_hot":-1,"title":"Alibaba’s Breakup Shows Global Tech Firms How to Unlock Value","media":"Bloomberg","content":"<div>\n<p>ADRs soar on plan to split off units into standalone companiesUS tech giants also face higher scrutiny, calls for partitionsA plan to split Alibaba Group Holding Ltd. into six units sent the company’s...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2023-03-28/alibaba-breakup-shows-global-tech-giants-a-way-to-unlock-value\">Source Link</a>\n\n</div>\n","source":"lsy1584095487587","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba’s Breakup Shows Global Tech Firms How to Unlock Value</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba’s Breakup Shows Global Tech Firms How to Unlock Value\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-03-29 10:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2023-03-28/alibaba-breakup-shows-global-tech-giants-a-way-to-unlock-value><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ADRs soar on plan to split off units into standalone companiesUS tech giants also face higher scrutiny, calls for partitionsA plan to split Alibaba Group Holding Ltd. into six units sent the company’s...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2023-03-28/alibaba-breakup-shows-global-tech-giants-a-way-to-unlock-value\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4503","symbol_name":"景林资产持仓","start_time":0,"source_url":"https://www.bloomberg.com/news/articles/2023-03-28/alibaba-breakup-shows-global-tech-giants-a-way-to-unlock-value","article_id":"2323291290","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2323291290","pubTimestamp":1680057617,"sourceInfo":{"source_id":"lsy1584095487587","name":"Bloomberg"},"weMediaInfo":null,"summary":"ADRs soar on plan to split off units into standalone companiesUS tech giants also face higher scruti","collect":0,"end_time":0,"defaultTopTitle":"bloomberg.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4503":"景林资产持仓","BK4122":"互联网与直销零售","TCEHY":"腾讯控股ADR","BK4526":"热门中概股","LU0971096721.USD":"富达环球金融服务 A","BK4502":"阿里概念","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","09988":"阿里巴巴-W","BK4505":"高瓴资本持仓","00700":"腾讯控股","BK4581":"高盛持仓","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","BK4504":"桥水持仓","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","09888":"百度集团-SW","BK4548":"巴美列捷福持仓","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","03690":"美团-W","BK4127":"投资银行业与经纪业","09618":"京东集团-SW","BK4565":"NFT概念","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","BK4539":"次新股","LU0821914370.USD":"贝莱德亚洲成长领袖A2","BK4554":"元宇宙及AR概念","BIDU":"百度","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK4191":"家用电器","JD":"京东","BK4585":"ETF&股票定投概念","LU1051768304.USD":"贝莱德新兴市场股票收益A6","BK4534":"瑞士信贷持仓","LU0651946864.USD":"贝莱德新兴市场股票收益A2","BK4533":"AQR资本管理(全球第二大对冲基金)","BABA":"阿里巴巴","BK4575":"芯片概念","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BK4007":"制药","BK4558":"双十一","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","BK4587":"ChatGPT概念","LU0106831901.USD":"贝莱德世界金融基金A2","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","LU1688375341.USD":"贝莱德中国灵活股票基金","BK4524":"宅经济概念","BK4535":"淡马锡持仓","BK4538":"云计算","BK4527":"明星科技股","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","BK4588":"碎股","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H"},"translate_title":"阿里巴巴-SW的解体向全球科技公司展示了如何释放价值","themeId":"dabeb085ccdd4624b7403eda55608461","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"03690":0.9,"TCEHY":0.9,"JD":0.9,"BIDU":0.9,"BABA":0.9,"09888":0.9,"00700":0.9,"09618":0.9,"09988":0.6},"content_text":"ADRs soar on plan to split off units into standalone companiesUS tech giants also face higher scrutiny, calls for partitionsA plan to split Alibaba Group Holding Ltd. into six units sent the company’s stock soaring Tuesday while introducing a potential model for global tech giants facing mounting breakup pressures. Alibaba’s American depositary receipts climbed as much as 14.3% on Tuesday, its best performance since June, after the company announced a plan to separate its $255 billion empire into divisions that will raise funds individually and eventually explore initial public offerings. The move appears designed to appease Chinese regulators after a yearslong crackdown on the nation’s tech giants and could serve as a blueprint for similar firms.“This is a game changer in terms of raising the expectations for other companies,” said Tom Masi, portfolio manager at GW&K Investment Management. “If it is consistent with the direction that the government wants them to go in and shareholders respond positively, other companies are likely to pursue the same path.”Alibaba Breaks Out on Breakup Plan | Shares jump to highest in a month after overhaul newsTencent Holdings Ltd. is probably the most obvious candidate because it has so many entities that could be standalone units, Masi said. Its US-traded shares rose as much as 8% Tuesday. Online retailer JD.com Inc., which is planning to list its shipping unit, and Baidu Inc., which has businesses ranging from online search to autonomous vehicles, both climbed around 5%. The market’s enthusiasm for Alibaba’s strategy is notable since the company has been trading at a steep discount to the sum of its parts, Morgan Stanley analyst Gary Yu wrote in a note on Tuesday.“The headline P/E is effectively implying zero value to Alibaba’s major consolidated subsidiaries and certain private and public equity investments,” he wrote.While the ADRs are trading around $98, Morgan Stanley sees substantial potential upside as the market comes to appreciate the value of its business segments. Other sell-side analysts were similarly encouraged by the strategy. Shrinking MonopoliesThe breakup plan is in-line with China’s policy to reduce the monopolistic nature of tech giants, according to Bloomberg Intelligence analyst Marvin Chen. “While China tech spinoffs are not uncommon, the move looks to be more encompassing, including core businesses, that may serve as a blueprint for the industry going forward,” he said.The strategy may be a risk for companies that compete with the newly public firms. Purer plays in local consumer services and e-commerce sectors like Meituan, JD, PDD Holdings Inc. and Sea Ltd. could see reduced demand for their shares as investors move into the new standalone units, Bloomberg Intelligence analyst Catherine Lim wrote in a note Tuesday.In addition, US tech giants like Meta Platforms Inc. and Amazon.com Inc. could be ripe for breakups due to privacy concerns and to unlock value in stock prices that are well off all-time highs, according to Jim Osman, founder of special situations research firm The Edge Consulting Group. “This has changed the environment for looking at these big tech names that have been under pressure to do this,” he said.If Amazon separates its cloud and subscription services units, the company could deliver a breakup value that’s 70% above its current share price, Osman said. Meta’s WhatsApp and Instagram businesses are also not being valued appropriately, he said. Scrutiny of large technology firms in the US continues to gain traction in Washington. TikTok chief executive officer Shou Chew will appear before a House committee Thursday to respond to warnings from lawmakers about the risks poised by the platform that’s used by 150 million people in the US.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9941817897,"gmtCreate":1680115056620,"gmtModify":1680115059543,"author":{"id":"3568440341211251","authorId":"3568440341211251","name":"miker9110","avatar":"https://static.tigerbbs.com/74c64fa1d597623853f21e898b7d0c13","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3568440341211251","authorIdStr":"3568440341211251"},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9941817897","repostId":2323291290,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9941162743,"gmtCreate":1680061206183,"gmtModify":1680061210021,"author":{"id":"3582192196234738","authorId":"3582192196234738","name":"Penthon","avatar":"https://static.tigerbbs.com/5f9fe77bd547ced80b3a9f115de46ca8","vip":1,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":3,"crmLevelSwitch":1,"idStr":"3582192196234738","authorIdStr":"3582192196234738"},"htmlText":"Up","listText":"Up","text":"Up","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9941162743","repostId":2323291290,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9941161281,"gmtCreate":1680059239444,"gmtModify":1680059243045,"author":{"id":"4112855949003692","authorId":"4112855949003692","name":"kong1509","avatar":"https://community-static.tradeup.com/news/5c7779ca51cd488037d326183dfd5994","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"4112855949003692","authorIdStr":"4112855949003692"},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9941161281","repostId":2323291290,"repostType":4,"repost":{"id":"2323291290","pubTimestamp":1680057617,"share":"https://ttm.financial/m/news/2323291290?lang=&edition=fundamental","pubTime":"2023-03-29 10:40","market":"us","language":"en","title":"Alibaba’s Breakup Shows Global Tech Firms How to Unlock Value","url":"https://stock-news.laohu8.com/highlight/detail?id=2323291290","media":"Bloomberg","summary":"ADRs soar on plan to split off units into standalone companiesUS tech giants also face higher scruti","content":"<html><head></head><body><ul><li><p>ADRs soar on plan to split off units into standalone companies</p></li><li><p>US tech giants also face higher scrutiny, calls for partitions</p></li></ul><p>A plan to split Alibaba Group Holding Ltd. into six units sent the company’s stock soaring Tuesday while introducing a potential model for global tech giants facing mounting breakup pressures. </p><p>Alibaba’s American depositary receipts climbed as much as 14.3% on Tuesday, its best performance since June, after the company announced a plan to separate its $255 billion empire into divisions that will raise funds individually and eventually explore initial public offerings. </p><p>The move appears designed to appease Chinese regulators after a yearslong crackdown on the nation’s tech giants and could serve as a blueprint for similar firms.</p><p>“This is a game changer in terms of raising the expectations for other companies,” said Tom Masi, portfolio manager at GW&amp;K Investment Management. “If it is consistent with the direction that the government wants them to go in and shareholders respond positively, other companies are likely to pursue the same path.”</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/711c602550865c111954d27db501a827\" alt=\"Alibaba Breaks Out on Breakup Plan | Shares jump to highest in a month after overhaul news\" title=\"Alibaba Breaks Out on Breakup Plan | Shares jump to highest in a month after overhaul news\" tg-width=\"930\" tg-height=\"523\"/><span>Alibaba Breaks Out on Breakup Plan | Shares jump to highest in a month after overhaul news</span></p><p>Tencent Holdings Ltd. is probably the most obvious candidate because it has so many entities that could be standalone units, Masi said. Its US-traded shares rose as much as 8% Tuesday. Online retailer JD.com Inc., which is planning to list its shipping unit, and Baidu Inc., which has businesses ranging from online search to autonomous vehicles, both climbed around 5%. </p><p>The market’s enthusiasm for Alibaba’s strategy is notable since the company has been trading at a steep discount to the sum of its parts, Morgan Stanley analyst Gary Yu wrote in a note on Tuesday.</p><p>“The headline P/E is effectively implying zero value to Alibaba’s major consolidated subsidiaries and certain private and public equity investments,” he wrote.</p><p>While the ADRs are trading around $98, Morgan Stanley sees substantial potential upside as the market comes to appreciate the value of its business segments. Other sell-side analysts were similarly encouraged by the strategy. </p><h2>Shrinking Monopolies</h2><p>The breakup plan is in-line with China’s policy to reduce the monopolistic nature of tech giants, according to Bloomberg Intelligence analyst Marvin Chen. </p><p>“While China tech spinoffs are not uncommon, the move looks to be more encompassing, including core businesses, that may serve as a blueprint for the industry going forward,” he said.</p><p>The strategy may be a risk for companies that compete with the newly public firms. Purer plays in local consumer services and e-commerce sectors like Meituan, JD, PDD Holdings Inc. and <a href=\"https://laohu8.com/S/SE\">Sea Ltd</a>. could see reduced demand for their shares as investors move into the new standalone units, Bloomberg Intelligence analyst Catherine Lim wrote in a note Tuesday.</p><p>In addition, US tech giants like <a href=\"https://laohu8.com/S/META\">Meta Platforms</a> Inc. and Amazon.com Inc. could be ripe for breakups due to privacy concerns and to unlock value in stock prices that are well off all-time highs, according to Jim Osman, founder of special situations research firm The Edge Consulting Group. </p><p>“This has changed the environment for looking at these big tech names that have been under pressure to do this,” he said.</p><p>If Amazon separates its cloud and subscription services units, the company could deliver a breakup value that’s 70% above its current share price, Osman said. Meta’s WhatsApp and Instagram businesses are also not being valued appropriately, he said. </p><p>Scrutiny of large technology firms in the US continues to gain traction in Washington. TikTok chief executive officer Shou Chew will appear before a House committee Thursday to respond to warnings from lawmakers about the risks poised by the platform that’s used by 150 million people in the US. </p></body></html>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Alibaba’s Breakup Shows Global Tech Firms How to Unlock Value</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAlibaba’s Breakup Shows Global Tech Firms How to Unlock Value\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-03-29 10:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2023-03-28/alibaba-breakup-shows-global-tech-giants-a-way-to-unlock-value><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ADRs soar on plan to split off units into standalone companiesUS tech giants also face higher scrutiny, calls for partitionsA plan to split Alibaba Group Holding Ltd. into six units sent the company’s...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2023-03-28/alibaba-breakup-shows-global-tech-giants-a-way-to-unlock-value\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4524":"宅经济概念","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","BK4535":"淡马锡持仓","LU1515016050.SGD":"Blackrock Emerging Markets Equity Income A6 SGD-H","BK4575":"芯片概念","BK4527":"明星科技股","BK4538":"云计算","BK4588":"碎股","BK4526":"热门中概股","00700":"腾讯控股","BABA":"阿里巴巴","BIDU":"百度","IE00B0JY6N72.USD":"PINEBRIDGE GLOBAL EMERGING MARKETS FOCUS EQUITY \"A\" (USD) ACC","BK4587":"ChatGPT概念","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","BK4122":"互联网与直销零售","BK4503":"景林资产持仓","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","09618":"京东集团-SW","BK4502":"阿里概念","03690":"美团-W","BK4505":"高瓴资本持仓","09988":"阿里巴巴-W","BK4581":"高盛持仓","BK4504":"桥水持仓","BK4548":"巴美列捷福持仓","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","BK4127":"投资银行业与经纪业","JD":"京东","LU0106831901.USD":"贝莱德世界金融基金A2","LU1048596156.SGD":"Blackrock Asian Growth Leaders A2 SGD-H","BK4565":"NFT概念","LU1688375341.USD":"贝莱德中国灵活股票基金","BK4539":"次新股","LU0821914370.USD":"贝莱德亚洲成长领袖A2","BK4554":"元宇宙及AR概念","09888":"百度集团-SW","LU0971096721.USD":"富达环球金融服务 A","TCEHY":"腾讯控股ADR","BK4191":"家用电器","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU0651946864.USD":"贝莱德新兴市场股票收益A2","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","BK4007":"制药","LU1051768304.USD":"贝莱德新兴市场股票收益A6","BK4558":"双十一"},"source_url":"https://www.bloomberg.com/news/articles/2023-03-28/alibaba-breakup-shows-global-tech-giants-a-way-to-unlock-value","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2323291290","content_text":"ADRs soar on plan to split off units into standalone companiesUS tech giants also face higher scrutiny, calls for partitionsA plan to split Alibaba Group Holding Ltd. into six units sent the company’s stock soaring Tuesday while introducing a potential model for global tech giants facing mounting breakup pressures. Alibaba’s American depositary receipts climbed as much as 14.3% on Tuesday, its best performance since June, after the company announced a plan to separate its $255 billion empire into divisions that will raise funds individually and eventually explore initial public offerings. The move appears designed to appease Chinese regulators after a yearslong crackdown on the nation’s tech giants and could serve as a blueprint for similar firms.“This is a game changer in terms of raising the expectations for other companies,” said Tom Masi, portfolio manager at GW&K Investment Management. “If it is consistent with the direction that the government wants them to go in and shareholders respond positively, other companies are likely to pursue the same path.”Alibaba Breaks Out on Breakup Plan | Shares jump to highest in a month after overhaul newsTencent Holdings Ltd. is probably the most obvious candidate because it has so many entities that could be standalone units, Masi said. Its US-traded shares rose as much as 8% Tuesday. Online retailer JD.com Inc., which is planning to list its shipping unit, and Baidu Inc., which has businesses ranging from online search to autonomous vehicles, both climbed around 5%. The market’s enthusiasm for Alibaba’s strategy is notable since the company has been trading at a steep discount to the sum of its parts, Morgan Stanley analyst Gary Yu wrote in a note on Tuesday.“The headline P/E is effectively implying zero value to Alibaba’s major consolidated subsidiaries and certain private and public equity investments,” he wrote.While the ADRs are trading around $98, Morgan Stanley sees substantial potential upside as the market comes to appreciate the value of its business segments. Other sell-side analysts were similarly encouraged by the strategy. Shrinking MonopoliesThe breakup plan is in-line with China’s policy to reduce the monopolistic nature of tech giants, according to Bloomberg Intelligence analyst Marvin Chen. “While China tech spinoffs are not uncommon, the move looks to be more encompassing, including core businesses, that may serve as a blueprint for the industry going forward,” he said.The strategy may be a risk for companies that compete with the newly public firms. Purer plays in local consumer services and e-commerce sectors like Meituan, JD, PDD Holdings Inc. and Sea Ltd. could see reduced demand for their shares as investors move into the new standalone units, Bloomberg Intelligence analyst Catherine Lim wrote in a note Tuesday.In addition, US tech giants like Meta Platforms Inc. and Amazon.com Inc. could be ripe for breakups due to privacy concerns and to unlock value in stock prices that are well off all-time highs, according to Jim Osman, founder of special situations research firm The Edge Consulting Group. “This has changed the environment for looking at these big tech names that have been under pressure to do this,” he said.If Amazon separates its cloud and subscription services units, the company could deliver a breakup value that’s 70% above its current share price, Osman said. Meta’s WhatsApp and Instagram businesses are also not being valued appropriately, he said. Scrutiny of large technology firms in the US continues to gain traction in Washington. TikTok chief executive officer Shou Chew will appear before a House committee Thursday to respond to warnings from lawmakers about the risks poised by the platform that’s used by 150 million people in the US.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":36,"commentSize":3,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2323291290"}