Alibaba Group plans to split itself into six independent businesses.
The Chinese e-commerce giant made the announcement a day after its founder, Jack Ma, was spotted in mainland China for the first time in over a year. Each new business unit will have the ability to raise outside funding and go public.
- In a statement, Alibaba said the move is designed to unlock shareholder value and foster market competitiveness.
- Following the announcement, Alibaba shares jumped more than 9% in pre-market trading.
- The six business groups are: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group, and Digital Media and Entertainment Group.
- Each business unit will have its own CEO and board of directors.
- Taobao Tmall Commerce Group will remain wholly owned by Alibaba.
- Alibaba was once valued at more than $800B at its peak in October 2020. The company now has a market cap of about $250B.
