Alibaba splits into six units that may pursue individual IPOs -Bloomberg News (2024)

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Alibaba splits into six units that may pursue individual IPOs -Bloomberg News? ›

Under the restructuring, Alibaba's various businesses will be split up into six major areas: cloud computing, Chinese e-commerce, global e-commerce, digital mapping and food delivery, logistics, and media and entertainment, the company said Tuesday.

This move aims to enhance agility, shorten decision-making processes, and allow the company to respond more quickly to market changes, ultimately unlocking the full potential value of Alibaba's various businesses.

Since launching its first website helping small and medium-sized enterprises in China to sell internationally, Alibaba is a holding company of six major business groups: Taobao and Tmall Group, Alibaba International Digital Commerce Group, Cloud Intelligence Group, Local Services Group, Cainiao Smart Logistics Network ...

The six new groups will be: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Service Group, Cainiao Smart Logistics, Global Digital Commerce Group and Digital Media and Entertainment Group.

In March 2023, Alibaba announced plans to separate into six separate units. The company said each business will have the ability raise outside funding and even pursue an IPO. According to report, the company would likely hold on to its cloud/artificial intelligence business and its giant e-commerce operations.

Alibaba Group Holding Ltd. called off an initial public offering for its Cainiao logistics arm in Hong Kong, shelving a $1 billion-plus deal in a surprise move that underscores its new approach toward rejuvenating a flagging e-commerce empire.

SHANGHAI, July 21 (Reuters) - A Hong Kong journalist has quit in a controversy over disputed remarks that Jack Ma, founder of Chinese e-commerce giant Alibaba Group, is reported to have made in support of Beijing's violent crackdown on Tiananmen Square protesters in 1989.

The company went public in the U.S. by listing on the NYSE in September 2014. Many believe that Alibaba's founders chose to go public in the U.S. to retain control of the company. Investors tend to trust companies listed on the NYSE because of the exchange's reputation and requirement for transparency.

The six newly-formed business units will be: a Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics, Global Digital Commerce Group, and a Digital Media and Entertainment Group.

These act as the subsidiaries and the cornerstone of the Alibaba Company. The company focuses much on its core values that are the customers, cooperation and teamwork, passion, integrity, change embracing and employees honoring their job.

Why is Alibaba struggling? ›

Since then, Alibaba has endured the blocking of the initial public offering (IPO) of financial arm Ant Group, a multibillion-dollar fine, and forced divestitures. It's also struggled with broader weakness in the Chinese economy and intensifying price competition from the likes of PDD Holdings' Pinduoduo.

The annual active consumers on its online shopping properties in China reached 903 million by the first quarter of 2022, increasing from 882 million in the previous quarter.

Considering that Chinese-American relations show no signs of improvement, the political risks within China remain high and Alibaba's revenues are no longer growing at a double-digit rate, I continue to believe that investing in the company is not worthwhile due to the lack of meaningful growth catalysts that could ...

Alibaba Group said in a regulatory filing Tuesday that the six new groups will be made up of the Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group.

Jack Ma, founder of Alibaba, in 2007. Son was an early investor in internet firms, buying a share of Yahoo! in 1995 and investing a $20 million stake into Alibaba in 1999; he was briefly the richest person in the world before the stock market crashed.

Alibaba shares fell, after the Chinese e-commerce group took a hit on the value of its holdings in other public companies, pushing it to a much smaller-than-expected quarterly profit.