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The technology corporation "Alibaba" (Alibaba) announced that it will divide its business among six companies that will be able to raise external financing and issue their own shares on the stock exchange, reported CBS.

Each business group will be managed by its own board of directors and CEO, BTA reported. 

The purpose of the plan is to increase the income for the shareholders in the corporation and to encourage free competition, says an announcement from "Alibaba". 

"Alibaba" is testing a "ChatGPT"-like artificial intelligence

This is the most serious reorganization in the history of the Chinese giant in online commerce.

It comes after a difficult few years for the company, which has faced slowing economic growth in China and tougher regulations imposed by Beijing's rulers.

Because of this, the value of Alibaba's shares fell by billions of dollars.

The change in the business structure of the corporation will help it improve its results, notes CBS.

Amid the company's reorganization announcement, its shares rose more than 9 percent in U.S. over-the-counter trading before Wall Street opened.

On the Hong Kong Stock Exchange, however, they recorded a drop of 1.17 percent as of 3:00 p.m. Bulgarian time. 

Yesterday, the publication "South China Morning Post" reported that the founder of "Alibaba" Jack Ma has returned to China after spending more than a year abroad, reported Reuters.

Ma, who is one of China's most prominent entrepreneurs, left China in late 2021 after criticizing the actions of Chinese regulators in late 2020. 

Ali Baba