Alibaba to split into 6 units and explore IPOs; shares up 14% in the U.S.
Publishing timestamp: 2023-03-28 20:29:17
Summary
Alibaba announced a significant reorganization, splitting the company into six business groups, each with the ability to raise outside funding and go public. The move is aimed at unlocking shareholder value and fostering market competitiveness. Each business group will be managed by its own CEO and board of directors, and they will revolve around Alibaba's strategic priorities. The reorganization comes after a tough couple of years for Alibaba, which has faced slowing economic growth at home and tougher regulation from Beijing, resulting in billions being wiped off its share price. The company sees the creation of six businesses as a way to be nimbler and reinvigorate growth.
Sentiment: NEUTRAL
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