China e-commerce giant Alibaba outlines future strategy
Top executives of Chinese e-commerce and financial giant Alibaba say it plans to spin off some of its sprawling e-commerce and finance empire as independent businesses to make them more flexible and maximize their value
HONG KONG (AP) — Alibaba plans to spin off some of its sprawling e-commerce and finance empire as independent businesses to make them more flexible and maximize their value, its top executives said Thursday, as the company emerges from regulatory crackdowns that rattled Chinese tech industries.
Alibaba CEO Daniel Zhang outlined details of a plan announced earlier this week to split Alibaba into six main groups as a prelude toward stock listings of some of its companies. The restructuring marks a new stage in Alibaba’s growth after a series of setbacks as regulators tightened oversight of the industry.
Alibaba, whose headquarters is in the eastern city of Hangzhou, will be “in the nature of a holding company that is the controlling shareholder of the business group companies,” Zhang said in a conference call.
Alibaba's CFO, Toby Xu, said the company would continue to evaluate the strategic importance of group companies after they go public and decide whether or not to retain control. He declined to say when they might go public.
