ALIBABA to SPLIT into 6 Companies
Alibaba $BABA will restructure into six independent companies with different managements and boards. The six companies will remain subsidiaries of Alibaba but may potentially have IPOs.
Here's how the restructuring will take place:
1. Cloud computing
2. Chinese e-commerce
3. Global e-commerce
4. Digital mapping and food delivery
6. Media and entertainment
The main business is Chinese e-commerce, and this is where most of the value of the company comes from. It is a move similar to Google's restructuring into Alphabet $GOOG in 2015, but Alibaba is more diversified than Google and can actually unlock more value through this restructuring.
A restructuring will also be good for the relationship of the company with the Chinese government.