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Will Alibaba's Historic Split Into 6 New Business Units Supercharge Its Stock?

Leo Sun, The Motley Fool
·4-min read
Will Alibaba's Historic Split Into 6 New Business Units Supercharge Its Stock?

Alibaba's (NYSE: BABA) stock surged 14% on March 28 after the Chinese e-commerce and tech giant announced that it would split its business into six new groups: Cloud Intelligence, Taobao Tmall Commerce, Local Services, Cainiao Smart Logistics, Global Digital Commerce, and the Digital Media and Entertainment Group. All six groups will be led by separate CEOs, and most of them will pursue fresh funding from external investors or public stock listings. In a letter to his employees, Alibaba CEO Daniel Zhang said the restructuring would enable the company to become "more agile, shorten decision-making links, and respond faster" to all the changes in the market.

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