Alibaba is separating the Chinese e-commerce company into six business groups as it looks to react faster to market changes and increase their value.
Alibaba Group Holding Ltd. said in a regulatory filing that it will be split into 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 possibly seek its own initial public offering, except for Taobao Tmall Business Group, which will stay wholly owned by Alibaba Group.
Recent years have seen the internet giant face unprecedented headwinds as Beijing has imposed tighter restrictions on the domestic tech industry.
Combined revenue at China’s internet companies shrank by just over one percent to 1.46 trillion yuan ($212 billion) in 2022, the first contraction in almost a decade, according to data from the Ministry of Industry and Information Technology.
Alibaba founder Jack Ma has kept a low profile since late 2020, when a speech he made attacking Chinese regulators was followed by Beijing pulling the plug on Alibaba affiliate Ant Group’s planned IPO.
Ma has been spotted around the world over the past two years, but made a rare public appearance in China on Monday after his fall from grace.
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