Alibaba says will split into 6 groups, separate IPOs expected

Alibaba announced on Tuesday that it would split into six business groups in one of the most significant overhauls of a leading Chinese tech firm to date.

Daniel Zhang, the company's chairman, and CEO, said the restructuring would enable each separate business to pursue its own fundraising and public listing plans.

Hangzhou-based Alibaba said the moves were intended to "unlock shareholder value and foster market competitiveness."

Under the new arrangement, each of the six newly established units will be managed by its CEO and board of directors.

A key exception to the restructuring is Taobao Tmall Commerce Group – the operator of one of China's top online purchasing platforms – which will remain wholly owned by Alibaba Group.