E-commerce giant Alibaba said on Tuesday, will be divided into six separate business groupsIt is going through the biggest transformation in its 24-year history. daniel zhangthe head of the company stated that the restructuring will allow each business running their own fundraising and listing plans bag. Investors applauded the announcement on the New York Stock Exchange on Tuesday, causing the stock to surge over 9%.
Hangzhou-based Alibaba said the purpose of the restructuring is to “create value for shareholders and increase competitiveness in the market.” Each of the six new dependencies will be led by its own CEO and board of directors, according to the agencies.
The only exception will be Taobao Tmall Trading Group will remain wholly owned by the Alibaba group – the operator of one of China’s leading online shopping platforms. The group said the restructuring would not affect Alibaba’s listing in New York and Hong Kong.
“This transformation is the result of all our businesses. be more agile“It will improve decision making and allow for a faster response to market changes,” Daniel Zhang said in a letter to employees, which he argues is the market’s “best litmus test.”
difficult years
internet giant go through difficult yearsAs Beijing imposes stricter restrictions on the domestic tech industry. The combined revenue of China’s internet companies fell just over 1% to 1.46 trillion yuan ($212 billion) in 2022, the first contraction in nearly a decade, according to data from the Ministry of Industry and Technology.
The restructuring announcement comes when he is the founder of Alibaba. billionaire Jack MaMade a rare appearance in China on Monday, after a few months abroad. Jack Ma, who left the leadership of his group in 2019 to devote himself entirely to philanthropic activities, spent two and a half years out of sight after public criticism of the Chinese regulator. Since retiring from the media in 2020, every bit of information about the billionaire and his movements has been highly commented on Chinese social media.
Beijing has allowed the tech sector to grow for years without much regulation, but in 2020 it will campaign campaign agreed in recent years High penalties for various companies in the industry. Among them is Alibaba. Inflicted a massive antitrust fine of 18,200 million yuan ($2,646 million, €2,458 million) in 2021, the largest of its kind in the country’s history.
Source: Informacion
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