Alibaba to reorganize as 6 separate companies

Alibaba Team is planning to split right into 6 units, the company informed Reuters. The various entities will look for fundraisings and market listings as China eases its crackdown on private business.

Alibaba to reorganize as 6 separate companies


The big restructuring will see the company split right into 6 companies - Shadow Knowledge Team (shadow solutions), Taobao Tmall Business Team (local online business services), Local Solutions Team (delivery services), Cainiao Wise Logistics Team (logistics), Global Electronic Business Team (AliExpress) and Electronic Media and Entertainment Team (video pc gaming, movie and internet solutions).


The announcement comes a day after Jack Ma's go back to China, a relocation that's seen as an indicator of Beijing's softer approach towards private companies. Alibaba is under hefty examination for the previous 2 years after being a target of regulatory authorities.


In a letter to staff, Chief Exec Daniel Zhang said the intention is to earn the company "more nimble, reduce decision-making links and react much faster". He will proceed as chairman and CEO of Alibaba Team, which will take a brand-new role as a holding company management model.

Alibaba to reorganize as 6 separate companies


Each of the 6 companies will have a CEO and a board of supervisors with the ability to raise funding beyond the umbrella company. One exemption will be Taobao Tmall Business Team, which will be completely owned by Alibaba Team.


Experts see the restructuring as an action to soften the approach to US worldwide financiers and regulatory authorities. Jack Ma's go back to China, days after Li Qiang's visit as premier of China, could be one way to boost business self-confidence amongst local business owners that China's technology crackdown is finishing

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