Alibaba: restructuring continues according to the 1+6+N plan
Alibaba continues its restructuring process, aimed at maximizing its market value according to the "1+6+N" plan expressed in March.
Zhuang Zhuoran, vice president and chairman of Fliggy, Alibaba's travel platform, will no longer be accountable to Alibaba's Local Life unit CEO Yu Yongfu. Zhuang, but will report directly to BABA-SW Group President and CEO Daniel Zhang. An organizational restructuring that precedes the complete outsourcing of the platform and, possibly, the subsequent listing on the stock exchange, given that Fliggy no longer becomes dependent on a single division, but an autonomous unit that reports directly to the top management.
This change also provided more clarity on the new corporate structure of the “1+6+N” group. It is a restructuring plan of the Chinese e-commerce giant, but not only, which provides for the division of the company into six distinct divisions and therefore the sale or independent listing of a series of divisions not seen as strategic by the group. So "1+6+N" comes to mean a holding company that controls six autonomous divisions, while the one that is not part of this structure becomes completely autonomous. The "N" is made up of a series of important companies such as Fliggy, travel, Hema, the "Supermarket of the future", Ali-Health, healthcare, RT Mart, hypermarkets, DAMO Academy, alternative scientific teaching.
Furthermore, as part of this restructuring, TaoBao, an online commerce platform controlled by Alibaba, and Tmall, a business-to-consumer platform born as an offshoot of TaoBao, were separated from an organizational point of view, with also the resignation of Yang Guang, president of the development and operations management committee, who will be replaced by two different managers from the Alibaba structure.
All this happens after Softbank, one of Alibaba's major shareholders, reduced its stake from 23.7% to 14.6% with a profit of 28 billion dollars, very useful for the Japanese group. Alibaba's restructuring will presumably lead to a minor financial revolution in China, with a group of rapidly developing subsidiaries going public.
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The article Alibaba: restructuring continues according to the 1+6+N plan comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/alibaba-prosegue-la-ristrutturazione-secondo-il-piano-16n/ on Mon, 17 Apr 2023 10:24:47 +0000.