ALIBABA is splitting itself into six business groups as the Chinese e-commerce company attempts to become more nimble in reacting to changes in the market and increasing the value of those units.
US-listed shares of Alibaba Group Holding Ltd. jumped 14 percent to close at US$98.40.
Alibaba Group said in a regulatory filing Tuesday, March 28, 2023, 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.
The company said that each group will be able to raise outside capital and potentially seek its own initial public offering, except for Taobao Tmall Business Group, which will stay wholly owned by Alibaba. Each group will be independently managed by its own chief executive officer and board of directors.
The Cloud Intelligence Group includes cloud, AI and DingTalk. The Taobao Tmall Business Group includes Taobao, Tmall, Taobao Deals, Taocaicai and 1688.com. The Local Services Group includes Amap and Ele.me, while the Global Digital Business Group includes Lazada, AliExpress, Trendyol, Daraz and Alibaba.com. The Digital Media and Entertainment Group includes Youku and Alibaba Pictures. (AP)