China’s e-commerce major Alibaba Group announced a major restructuring in which it will become a holding company with six distinct business groups.
According to media reports, each unit would have its own chief executive and board of directors to allow for faster decision-making. The restructuring was described by the company as the “most significant” organisational overhaul in its 24-year history. The units will be allowed to seek outside capital, implying that they may eventually go public. Only its China e-commerce division, Taobao Tmall Commerce Group, will be wholly owned by Alibaba. The announcement sparked a positive reaction in the stock market, with Alibaba’s US-listed shares rising more than 14 percent on Tuesday.