After the company announced that it will split its business into six different units, the shares of Chinese e-commerce giant Alibaba are higher on Tuesday.
The six units will include Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and Digital Media and Entertainment Group.
Each of the new units will be managed by its own chief executive and board of directors and will explore fundraising or initial public offerings. Daniel Zhang is the CEO of the Alibaba Group, which will move toward a holding company manage model. He will be the chief executive of the Cloud Intelligence Group.
In a letter to employees, he said that to solve the development of productivity and create differences, we must start with the transformation of production relations. The news comes one day after Alibaba founder Jack Ma was spotted at a primary school in Hangzhou, marking his first public appearance in mainland China in over a year.
Ma left China in late 2021 as authorities launched a regulatory crackdown on the country's tech sector.