Alibaba intends to give up 70% of its business

One of the world's leading online retailers, the Chinese company Alibaba, announced today that it will consider the possibility of monetizing its non-core assets and relinquishing control over some enterprises belonging to the group. Such a decision was made after regulatory measures, as a result of which Alibaba shares fell by 70%.

Two days ago, Alibaba announced the largest restructuring in its history, as a result of which the company will turn into a holding company with 6 divisions, each with its own board of directors and CEO.

Daniel Zhang, CEO of the entire group, noted that splitting Alibaba into separate divisions will give them more flexibility and eventually the company will be able to launch its own initial public offerings (IPOs).

«Alibaba will be more of an asset and capital operator in relation to the companies of the business group and will continue to assess the strategic importance of these companies when making control decisions,» Zhang said.

Recall that more than 2 years ago, Beijing launched a large-scale crackdown against local tech giants to combat monopolistic practices, data protection and other problems. As a result of Alibaba's restructuring, each business unit will be able to conduct independent fundraising and IPOs.

Now the company's management will have to decide whether the group wants to retain strategic control over each division after they become public.