Alibaba's Jack Ma and Joe Tsai Amplify Stakes, Sparking Stock Surge Amid Management Shakeup

Alibaba Group Holding Limited BABA tapped James Dong, 44, as the new acting CEO of its South Asian online retailer, Daraz Group. 

This move is part of a broader management reshuffle at the Chinese e-commerce giant. 

Dong, currently leading Alibaba’s Southeast Asian division Lazada Group SA, takes over from Daraz founder Bjarke Mikkelsen, Bloomberg reports.

His appointment comes amid challenges faced by Alibaba, including reduced demand post-Covid, regulatory crackdowns, and rising competition from companies like PDD Holdings Inc PDD.

Dong has been part of Alibaba’s globalization efforts since 2018 and became CEO of Lazada in 2022.

Alibaba acquired Daraz in 2018, expanding its international reach to include Lazada in Southeast Asia and Trendyol in Turkey. 

The Alibaba stock is shooting upwards Wednesday in line with the broader indexes IShares China Large-Cap ETF FXI and KraneShares Trust KraneShares CSI China Internet ETF KWEB.

On Tuesday, Alibaba and peer Chinese stocks got a boost from reports of China weighing a stimulus package of about $278 billion (2 trillion yuan) to drive the stock market.

The stocks got an additional boost from reports claiming Alibaba co-founders Jack Ma and Joe Tsai became Alibaba’s largest shareholders, surpassing SoftBank Corp. 

Jack Ma, who stepped down as Alibaba’s executive chairman in 2019, purchased shares worth approximately $50 million in the fourth quarter of 2023, bringing his total stake to over 4.3%. This acquisition positions him as the primary shareholder.

Meanwhile, Joe Tsai, who assumed the role of Alibaba’s chairman in September, expanded his shareholding through Blue Pool Management, his family investment entity. Tsai acquired 1.957 million Alibaba shares valued at $151.7 million, elevating him to the second-largest shareholder in the company.

Price Action: BABA shares are trading higher by 1.89% at $75.42 premarket on the last check Wednesday.

Also Read: Alibaba Surprises with Strong Q2 Earnings, But Faces IPO and Market Challenges

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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