Chinese e-commerce giant, Alibaba, has announced its plans to spin off its cloud division into a separate publicly traded company.
IN BRIEF:
- The company aims to complete the listing within the next 12 months.
- This comes after Alibaba released their first quarterly earnings report since its restructuring and China’s reopening after Covid-19 restrictions.
- The company has also developed a generative AI tool, Tongyi Qianwen, earlier this year, and said that the system could help accelerate customer adoption of its cloud computing service.
What does this mean?
Daniel Zhang, Alibaba CEO said: “We are taking concrete steps towards unlocking value from our businesses and are pleased to announce that our board has approved a full spin-off of the Cloud Intelligence Group via a stock dividend distribution to shareholders, with intention for it to become an independent publicly listed company.”
