Alibaba Group approved the split into an independent company

On Thursday, May 18, 2023 Alibaba Group approved a full spinoff of the Cloud Intelligence Group via a stock dividend distribution to shareholders. The goal is to complete the public listing within next 12 months. In March 2023, Alibaba announced plans to restructure into six units following a Chinese government’s lengthy regulatory crackdown on China’s tech sector.

Remember, at global scale, Alibaba Cloud is rated #4 (after AWS Azure and Google Cloud) in public cloud infrastructure as a service providers’ list! Split news was part of Q4 earnings released on May 18, 2023. This quarter Alibaba Cloud had revenue decline of -2% as compared to estimates of +6% growth.

My POV Chinese companies are having hard time fighting the trust issue, mainly being so close to Chinese Government, not by choice but by necessity.