Alibaba group
Alibaba Group CEO Eddie Wu will lead the company’s core e-commerce sector, as the company strives to boost growth and compete with fast-growing online shopping rivals like Pinduoduo.
Wu succeeds Trudy Dai, a long-serving Alibaba executive and one of the company’s founders. In an internal letter dated Wednesday, Alibaba Chairman Joe Tsai stated that Dai will assist in the formation of an asset management company targeted at enhancing returns on capital and “enhance shareholder value.”
PDD Holdings Inc., which controls the online shopping platform Pinduoduo and US-focused e-commerce site Temu, eclipsed Alibaba in market value in the previous month, prompting the reorganization. PDD’s market value of its US-listed stock was $199.41 billion as of Tuesday. Alibaba’s valuation was $191.75 billion.
PDD was hailed by Alibaba founder Jack Ma earlier this month for growing larger than his Hangzhou-based company, which has been China’s largest e-commerce operator for years. Tsai stated in his letter that Alibaba needs a “brand-new strategy” as well as a shift in the company’s organizational principles and procedures to adapt to a “brand-new environment.”
Following the announcement, Alibaba’s Hong Kong-listed stock surged 3.5% in trade on Wednesday. In March, the corporation restructured its operations, dividing them into six companies that would eventually raise their own money and go public.
Its cloud unit was supposed to be among the first to hold an IPO, but Alibaba later canceled the proposal, citing concerns about US export restrictions on advanced semiconductors used in artificial intelligence.
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