Shares of Alibaba have increased since the business revealed its intention to split up. Five of the six new units will investigate possibilities for new financing and initial public offerings (IPOs). With the exception of the online shopping site Taobao Tmall Commerce Group, the units will be able to collect money and apply for stock market listings. They will also have their own chief executives and boards of directors. The action follows rumors that Jack Ma, the creator of Alibaba, returned to China this week after an extended absence. Jack Ma hasn’t been seen in public much in the last three years.
Restructuring pays off
To take advantage of chances in their specific markets and sectors, Alibaba Group has reorganized its business units, enabling them to seek autonomous fundraising and initial public offerings (IPOs) when they are prepared. Investors saw value in the restructuring because Alibaba’s business divisions will be able to expand at their own speed, be more streamlined, and be less likely to be subject to antitrust breaches, according to China technology expert Rui Ma.
After years of strict control for Chinese technology companies, Alibaba has undergone restructuring. According to a story in the Alibaba-owned South China Morning Post daily, Alibaba founder Jack Ma recently returned to China after spending more than a year abroad. He was the most well-known Chinese millionaire to vanish during a campaign against tech innovators. In September 2019, he gave up his position as Alibaba’s CEO.
