Alibaba is splitting itself into six business groups as the Chinese e-commerce company attempts to become more nimble in reacting to changes in the market and increasing the value of those units.
Shares of Alibaba Group Holding Ltd jumped 8% at the opening bell.
Alibaba Group Holding Ltd. said in a regulatory filing Tuesday that the six new groups will be made up of the Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group.
The company said that each group will be able to raise outside capital and potentially seek its own initial public offering, except for Taobao Tmall Business Group, which will stay wholly owned by Alibaba Group. Each group will be independently managed by its own CEO and board of directors.
The Cloud Intelligence Group includes cloud, AI and…
