Alibaba (NYSE:BABA) stock is on the rise Tuesday after the company revealed plans to split up into six businesses.
The big news here is that Alibaba will switch to a business model that has it acting as a holding company. That will see its current business broken down into six new businesses. These businesses will have their own leadership teams and will be able to pursue their own funding, including initial public offerings (IPOs).
Let’s get into those businesses below!
Alibaba’s New Businesses
- Taobao Tmall Commerce Group — This business will focus on the company’s domestic e-commerce marketplaces.
- Global Digital Commerce Group — This business will handle the company’s overseas e-commerce operations.
- Cloud Intelligence Group — This new business will take care of Alibaba’s cloud computing unit.
- Local Services Group — This one is going to focus on the company’s food and grocery delivery business.
- Cainiao Smart Logistics — This business handles the logistics for Alibaba and third parties.
- Digital Media and Entertainment Group — This business will hold Alibaba’s streaming service and film production studios.
Bloomberg Intelligence analyst Marvin Chen said the following about the Alibaba plan to Bloomberg:
“It is one step in the direction with China’s policy to reduce the monopolistic nature of the tech giants. While China tech spinoffs are not uncommon, the move looks to be more encompassing, including core businesses, that may serve as a blueprint for the industry going forward.”
BABA stock is up 8.9% as of Tuesday morning.
Investors looking for all of the hottest stock market news will want to stick around!
We’ve got all of the hottest stock market news traders need to know about on Tuesday! Among that is what has shares of WiSA Technologies (NASDAQ:WISA), Pinterest (NYSE:PINS), and Monopar Therapeutics (NASDAQ:MNPR) stock. You can check all of that out at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.