Alibaba to break up into six units which may pursue individual IPOs
Alibaba $Alibaba(BABA)$
As per a Bloomberg report CEO Daniel Zhang will head up the cloud intelligence division; former international retail chief Jiang Fan will head up the digital business unit, while longtime executive Trudy Dai takes up the main Taobao Tmall online shopping division.
Its other divisions include local services such as meal delivery, the Cainiao logistics group and digital media and entertainment.
Zhang in a statement says, "At 24 years of age, Alibaba is welcoming a new opportunity for growth. The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs when they are ready."
This move will free up the company's main divisions from e-commerce and media to the cloud to operate with far more autonomy, laying the foundation for future spinoffs and market debuts.
"The news follows Beijing's vow to support private sector. If China wants to achieve its 5% GDP growth target, they need to support companies like Alibaba," UOB Kay Hian executive director Steven Leung commented.
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