Alibaba to Split Into Six Units That Can Pursue IPOs, Fundraising
$Alibaba(BABA)$ will restructure into six units that will be able to pursue independent fundraising and intial public offerings, it said Tuesday.
The company said it will reorganize into business groups focused on cloud intelligence, local services, logistics, digital media and entertainment, and commerce, each with their own chief executives and boards, according to a post on a company news website.
"The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs when they are ready," Daniel Zhang, Alibaba's chief executive and chairman, said in a letter to employees, according to the post.
Alibaba, with a market capitalization of about $230 billion, will follow a holding company management model, it said. Mr. Zhang will continue to lead the 24-year-old company and serve as the CEO of the cloud-intelligence group.
One business unit--Taobao Tmall Commerce Group--will remain wholly owned by Alibaba.
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