Alibaba Group has made adjustments to its plans for a large-scale corporate reorganization. The tech giant will not spin off its cloud business into a separate company, as it announced in March. The decision was made due to concerns about the impact of US sanctions, Alibaba said in a report.
Chinese tech giant Alibaba Group has abandoned its plan to spin off its cloud business into a separate entity. This is reflected in the company’s financial report for the third quarter of 2023.
New US sanctions on equipment and semiconductors could negatively impact Alibaba’s cloud division and its ability to offer its products, according to the document. Separating Cloud Intelligence Group into a separate business structure may not lead to the expected increase in its shareholder value, Alibaba added.
Alibaba Group’s intentions to carry out a large-scale reorganization of the corporation became known in March. The company planned to split the business into six parts and hold an initial public offering (IPO) in each of them. In May it emerged that Alibaba was preparing for an IPO of its online commerce division, which includes AliExpress.
Author:
Kirill Bilyk
Source: RB
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