Alibaba's era of operating as a giant company with many different businesses ended yesterday after the company announced it would split into six different companies. The step was taken as part of the company's restructuring process after the majority of the company's shares were no longer under the control of Jack Ma since last year.
Through the restructuring, six new companies ACloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group will be established. The decision of the direction of the company will be determined by the new CEO of each company. Funds will be generated by each company through an IPO offering later.
The restructuring of Alibaba is seen as a success for China to curb the power of technology companies that are seen to be increasingly influential to the point of threatening the government.
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