Chinese e-commerce giant Alibaba Group is planning to split its $220 billion empire into six units and explore fundraising or listing for most of them.
The big announcement comes just a day after Alibaba founder Jack Ma returned home from a year-long stay abroad, a move that dovetailed with Beijing’s effort to spur growth in the private sector after two years of the crackdown.
Alibaba said the biggest restructuring in its 24-year history would see it split into six units: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and Digital Media and Entertainment Group, as per a Reuters report.
The U.S.-listed shares of Alibaba, which have lost nearly 70% of their value since the curbs were imposed in late 2020, rose more than 14% yesterday on the NYSE after the announcement.
