Shares of Chinese e-commerce giant Alibaba are higher on Tuesday after the company announced it will split its business into six different units.
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. Alibaba Group will move toward a holding company manage model, with Daniel Zhang continuing to serve as CEO. He will also be the chief executive of the Cloud Intelligence Group.
ALIBABA’S JACK MA RESURFACES IN CHINA
U.S.-listed shares of Alibaba Group rose 7% in premarket trading.
Zhang said in a letter to employees that “To solve the development of productivity and create differences, we must first start with the transformation of production relations.”
News of the restructuring 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.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Ma left China in late 2021 just as authorities launched a regulatory crackdown on the country’s tech sector.
Reuters contributed to this report
