Chinese e-commerce giant Alibaba’s decided to suspend the separation plan. cloud business and transform it into an independent listed company. US restrictions on microchip exports The latest technology is forcing the Chinese giant to recalculate its path in the process of business diversification. Last October, the United States expanded export control rules to further restrict exports of advanced computer microprocessors and semiconductor manufacturing equipment to China. The company announced this Thursday that JC Properties and JSP Investment, the family trusts of Alibaba’s co-founder, Jack Ma, plans to reduce its stake in the company next week with the sale of 10 million shares worth $870.7 million (802 million euros). Specifically, each of Jack Ma’s family investment vehicles plans to divest five million shares. Alibaba’sU.S. Securities Commission (SEC) filings state that “the stock sale was conducted in connection with a divestiture plan dated August 16, 2023.” Alibaba shares listed on the New York Stock Exchange fell 10.1% this Thursday (9.65% at 20:00 in Spain).
Strategy change
The struggle for technological superiority between the USA and China is heating up It has triggered one of the most surprising corporate strategy shifts, as Alibaba’s cloud business is valued at $11 billion. “The recent expansion of US restrictions on the export of advanced computer chips has created uncertainties about the future of the Cloud Intelligence Group,” the Chinese company said in a statement. Alibaba believes that a complete spin-off of its cloud business may not have the desired effect of increasing shareholder value: “We believe that these new restrictions could materially and adversely impact Cloud Intelligence Group’s ability to deliver products and services and perform under existing agreements. Alibaba said: “This situation “It adversely affects our results and financial condition,” he said.
Wall Street’s reaction Alibaba’s comeback was swift, with its biggest decline in more than a year. The company is still recovering from the pandemic and is far from Amazon in terms of the quality of its service or the efficiency of its offering as a global e-commerce platform.
The Chinese company’s turnover reached 458,946 million yuan (58,308 million euros) in the first half (until September).A year ago, it reached 224,790 million yuan (28,559 million euros), including 8.5% growth in the second fiscal quarter. Between July and September, Alibaba managed to close the quarter with a net profit of 27,706 million yuan (3,519 million euros), as opposed to a loss of 20,561 million yuan (2,612 million euros) in the second fiscal quarter of the previous year.
Visible
Alibaba, parent company AliExpressDespite all these disruptions and changes in direction, it does not stand still. announced the same week Acquisition of business-to-business e-commerce platform operator Visable. This signing is consistent with Alibaba’s expansion strategies in the business market, which is a bridge for the rest of the group’s services. Platforms operated by Visable GmbH include wlw (‘Wer liefert was’), currently the leading B2B platform in the DA-CH region, and europages, the European B2B platform on which approximately three million companies are registered. Together, the platforms reach three million B2B buyers per month seeking detailed information about companies and products. Platforms record approximately 266,000 search queries per day. Visable offers businesses additional opportunities to increase their online reach with online marketing services.