Alibaba has confirmed that will take the first steps in restructuring that it announced last March, which will culminate in the division of the group into six companies. During the publication of its results, which confirm that the recovery of consumption in China may be further away than the authorities and companies thought, the company has confirmed that the first thing it will do in its change of structure is create a spinoff from its cloud division. According to Bloomberg, for this it will distribute different amounts of the titles of the new company to its shareholders.
The separation of its cloud division will be completed in the next 12 months, and in the process there are plans to include external investors, who are strategic for the company, through private financing. In total, Alibaba’s cloud division brought in 2.7 billion dollars in the first quarter of the year, which. It accounts for 9% of their total income.
Other steps you will take to do so involve IPO of several of its divisions. Currently, the group is already assessing and preparing for its logistics division, Cainiaoand its chain of food stores Freeshippo, start trading on the parquets. Likewise, Alibaba is also going to seek external financing for its international trade division.
Alibaba’s deconstruction plans in six companies have several phases, which will be applied progressively. When all the companies resulting from the division are ready, all, apart from the e-commerce platforms Taobao and tmallthey will have the possibility of marking their own routes in the financial field.
Several investors hope that the Alibaba division will contribute to a consumption recovery scenario. In fact, there are already clues that at least electronic commerce may see the beginning of its recovery close. But until then, Alibaba is taking various measures to combat the situation, apart from its restructuring. It has also driven aggressive spending cuts to improve its margins and offset the slow growth of trade in the country. Also to face increasing competition in e-commerce in China.
Outside the country, Alibaba is reducing its ambitions. As a sample, the sale of its latest package of shares in the Indian fintech giant Paytma step that has meant an acceleration in its withdrawal from the world’s fastest growing Internet and mobile sector, that of India.
