Alibaba will split into six business units that will have the right to raise funds independently and be listed. The restructuring aims to make the group “more agile, shorten decision-making links and respond faster,” Daniel Zhang, chairman and chief executive, wrote in a letter to staff.
The six units will be 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 of the business units will have its own CEO and board. They will also have the possibility to raise capital and seek an initial public offering. Taobao Tmall Commerce Group, which manages the Chinese e-commerce business, will be an exception and remain a wholly-owned unit of Alibaba, which, in turn, will become a holding company.
