The owner of AliExpress will be divided into six companies. Amazing news from China

AliExpress owner, Alibaba Group, announced on March 28 a massive change to its business. According to a recently presented strategy, the 25-year-old juggernaut may disintegrate.

Alibaba will split into six companies. He is looking for funding

According to the latest information received directly from the source, Alibaba Group is about to make huge changes to its structure. The e-commerce giant founded by Jacek Ma will be split into six small special purpose companies.

Greater dispersion and concentration on specific elements of the market should allow companies to look for new ways to finance. According to the information provided, the Chinese giant wants to be much more involved in raising funds from the market. Some of the companies will be listed on the stock exchange, which provides an opportunity for large cash injections.

Six companies. Each of something else

Alibaba will split into six companies. These 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.

So these are companies that will specialize in cloud computing, entertainment, logistics, retail or digital media.

The exchange responds

According to an Alibaba board member cited by Reuters, the changes should make the company more geared to reality. “Each group must actively respond to dynamic changes in the market. Each employee must also return to the mindset of the employer. - He said.

The company’s changes are also a response to the regulatory paralysis caused by China’s 2020 reforms. Since then, the company has lost more than 70 percent. its capitalization. Today’s news pushed its shares up 8 percent.