A day after Jack Ma's return to China, Alibaba announced its plan to split its business into six separate units.
This is a drastic step in the reshaping of the e-commerce firm founded by Jack Ma nearly 25 years ago.
The six units are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group.
According to the company, each new business unit will be overseen by its own chief executive and board of directors.
However, Daniel Zhang will remain chairman and CEO of Alibaba Group and also serve as CEO of Cloud Intelligence Group.
In addition, five of the business groups will also have the flexibility to obtain external capital and potentially seek their own IPO.
Analysts believe the overhaul could reduce the threat from Chinese authorities to the company, which has been the target of regulators for years.
The surprise move fueled a 15% jump in Alibaba shares on Hong Kong's Hang Seng index in the Asian session.
