Alibaba shares have soared as company executives announce a business shake-up
It’s been a good day for investors in Chinese tech giant Alibaba.
Shares in the company soared as executives announced a plan to break the business into parts.
Alibaba’s commerce leader says he will split the $220 billion empire into six individual units.
The major restructuring is the company’s biggest in 24 years.
Alibaba shares gained more than 14 per cent in New York and were up 13 per cent in Hong Kong.
The move follows reports Alibaba founder Jack Ma resurfaced in China this week after a long absence.
The units will have their own chief executives and boards of directors.
They will be allowed to raise capital and seek stock market listings.
Alibaba says the units will “capture opportunities in their respective markets and industries, thereby unlocking the value of Alibaba Group’s respective businesses”.
“The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs when they are ready,” says chief executive Daniel Zhang. #trending #featured
