Alibaba Group Holding Ltd has on Tuesday announced it plans to divide its business into six main units that will focus on e-commerce, media, and cloud.
According to Reuters, the company also stated that each unit will consider raising funds or holding initial public offerings.
Alibaba is a Chinese multinational technology company specializing in e-commerce, retail, internet, and technology. The company was founded in 1999 by Jack Ma and has since become one of the largest e-commerce companies in the world.
Alibaba’s primary business is its online marketplace, where businesses and consumers can buy and sell goods and services.
It has grown rapidly since its founding and now operates in more than 200 countries and regions around the world.
It was reported that before the opening bell, Alibaba’s U.S.-listed shares increased by 3.5% during trading.
The six units include the following: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and Digital Media and Entertainment Group. Each unit will have its own CEO and board of directors.
In a statement by the company, Alibaba Group’s current Chairman and CEO, Daniel Zhang, will continue to hold those positions.
It said, “Daniel Zhang will continue to serve as chairman and CEO of Alibaba Group, which will follow a holding company management model.”
