Following Alibaba Group Holding’s breakup into six units, each segment will function as an independently operating company that could go to the market to seek financing or launch an initial public offering, Chief Executive Officer Daniel Zhang said during a conference call held Thursday.
Zhang, who did not offer a timeline for the changes, described how the mammoth tech company would retain shareholder and board control after the split, but said that the relationship dynamic would change in that Alibaba would shift toward occupying a role as more of an asset and capital operator.
While groundwork for the split was underway prior to the announcement, the news was timed to coincide with the end of the fiscal year, so the company could immediately commence the implementation of the strategy once the new fiscal year begins, Zhang said.