China’s Alibaba Group said on Tuesday that it would become a holding company with six different business groups, in a major reshuffle of the country’s biggest e-commerce firm.
Alibaba described the restructuring was the “most significant” organizational overhaul in its 24-year history. It said each unit will have its own chief executive and board of directors to allow for quicker decision-making.
The units will be allowed to seek outside capital with an eye toward eventual initial public offerings. Only its China e-commerce unit, Taobao Tmall Commerce Group, will remain a wholly-owned Alibaba entity.
In premarket trading, Alibaba’s U.S.-listed shares rose 9 percent.
The restructuring comes one day after Alibaba’s billionaire founder, Jack Ma, returned to mainland China after a yearlong absence from the country, according to local media reports. The whereabouts of Mr. Ma, China’s most famous businessman, had become a source of intrigue after he disappeared from the public eye after criticizing Chinese regulators for stifling innovation at Ant Group, Alibaba’s financial technology sister company.
