- Alibaba Group Holding Limited BABA looks to re-separate Tmall and Taobao after fully integrating the two e-commerce businesses just over a year ago.
- Under the new round of reorganization, Alibaba B2C Business Group President Liu Peng will oversee Tmall, and Wang Hai, head of Taobao's C2M business unit, will be responsible for Taobao, TechNode cites local media outlet.
- Alibaba's move to freshly split two of its flagship businesses marks the continuance of its landmark restructuring divulged in late March, which will see the tech giant divided into six distinct units.
- Industry specialists expect the spin-offs from proven companies with compelling track records to attract high demand akin to JD Logistics, JD Health, and Ant Group.
- They also saw the split unlocking value by offering greater flexibility to focus on the individual businesses and offer freedom to the talents to explore their potential under the new structure. The breakup signaled ease in the sweeping regulatory crackdown, per the experts.
- Alibaba's community group-buy arm Taocaicai will merge into Tmall under the management of Liu Yiman, the current general manager of Tmall Supermarket.
- In the third quarter, online physical goods GMV for Taobao and Tmall, excluding unpaid orders, recorded a mid-single-digit year-over-year decline due to the COVID-19 resurgence, weak consumer demand, and competition. China Commerce accounted for 69% of Alibaba's revenue during the period.
- Price Action: BABA shares traded lower by 0.70% at $95.50 premarket on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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