Alibaba Group, one of the largest business houses of the new generation in China, is now going to split into 6 different companies. Recently Jack Ma, the founder of Alibaba Group, has returned to China. With this, he has made a plan to divide the business of Alibaba Group to make it systematic.
Let us tell that Jack Ma had not appeared in China for almost a year. After leaving China in 2021, he spent most of his time in Australia, Japan and Thailand. Immediately after his return to China, the shares of Alibaba Group have also registered an increase.
Alibaba's business will be different
According to Reuters news, this will be the first time in the 24-year history of Alibaba Group, when the business of the group is going to be divided. Alibaba Group is going to divide its media, entertainment, digital commerce and logistics and other works into 6 different companies.
The company's business will be divided into different businesses such as Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media & Entertainment Group.
The effect of China's changed strategy
Due to the restrictions and lockdowns related to Corona, business in China has suffered a lot. At the same time, many companies in America and Europe are shifting business from there to reduce their dependence on China. In such a situation, China has changed the strategy for its domestic private sector.
China has announced to reduce regulatory provisions to promote domestic private sector companies. Due to the Korana restrictions, the value of Alibaba Group's listed shares in the US had fallen by more than 70 percent. Recently, after the return of Jack Ma and now after the news of partition, they have climbed 14 percent.
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