Daniel Zhang recently stepped down as CEO of Alibaba for become the head of its cloud division. But just three months later, Zhang has also decided to leave that position, adding more uncertainty to the company, which is in the process of dividing into several companies. According to Bloomberg, the resignation also came on the same day that Zhang’s successors as CEO and President of Alibaba, Eddie Wu and Joseph Tsai, took office in their new positions.
Zhang’s departure from his current position in the company’s cloud area does not mean that he will definitively stop being linked to Alibaba, but rather that he will continue to be related to the group from a different position. From now on, Zhang will be in charge of directing a technology investment fund, endowed with 1,000 million dollars, on behalf of Alibaba.
As for Alibaba’s new direction, both Wu and Tsai are considered two lieutenants of Alibaba’s former CEO and one of its founders, Jack Ma. Additionally, they have a solid reputation as stewards of technology and strategy that has made Alibaba the company in the entity with the highest valuation in China. Founded in 1999, it fell out of favor in 2020 and has been the main objective of Xi Jingping’s administration during a period in which they have been in charge of thoroughly reviewing the activity of various technology companies since 2021 to make them comply with a series of regulations.
In addition to problems due to regulatory uncertainty, Alibaba has had difficulties due to the geopolitical situation, as well as a local economy that has cooled in recent times. It is also experiencing a lower level of sales due to competition from other local e-commerce companies.
The task of its new managers will be to find the key to moving forward amid the restructuring of the team into several separate companies. With this step, Alibaba has stated that it wants to function as an investment holding company, in which its different companies can seek external financing, and go public independently.
Joseph Tsai, current CEO of Alibaba, He is a Yale graduate who is well liked by investors and has experience negotiating deals, known in the United States for being the owner of the Brooklyn Nets. He is likely to play a key role in managing the markets and major entities supporting Alibaba. He knows the company’s business in depth, since he is one of its founders.
Eddie Wu It is also, but it is less known. He is a computer engineer and has focused on the development of the company’s advertising platform and its Alipay payment system, now part of Ant Group. He will be the President of Alibababut due to Zhang’s departure, quite unexpected, He will also be CEO of its cloud division hereinafter.
