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Alibaba Group Announces Major Restructuring to Increase Value and Expand Services

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Key takeaways:

  • Alibaba Group Holding Ltd. announced a major restructuring of its 24-year history, splitting its business into six main units.
  • The six units are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group.
  • The restructuring is intended to allow the company to react faster to market changes and increase their value.

Alibaba Group Holding Ltd. announced a major restructuring of its 24-year history, splitting its business into six main units. The six units are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group 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. The restructuring is intended to allow the company to react faster to market changes and increase their value.

The Cloud Intelligence Group will focus on cloud computing, big data, artificial intelligence, and the Internet of Things. The Taobao Tmall Commerce Group will focus on consumer-to-consumer and business-to-consumer e-commerce. The Local Services Group will focus on local services, such as food delivery and ride-hailing. The Cainiao Smart Logistics Group will focus on logistics and supply chain management. The Global Digital Commerce Group will focus on international e-commerce and digital marketing. Finally, the Digital Media and Entertainment Group will focus on digital media and entertainment.

Alibaba Group is confident that the restructuring will help the company to better serve its customers and increase its value. The company is also looking to raise outside capital and possibly seek its own initial public offering.

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