Softbank's stock rose after Alibaba revealed plans to split up into six units
Mar. 29, 2023 5:46 AM ET
SoftBank Group Corp. (SFTBY), SFTBF, BABA
By: Niloofer Shaikh, SA News Editor
 Carl Court
Softbank Group ( OTCPK:SFTBY) ( OTCPK:SFTBF) soared on Wednesday after Chinese e-commerce Alibaba (NYSE: BABA) announced a major restructuring plan - Reuters reported Wednesday.
With 13.7% stake, Alibaba is a key portfolio company of Softbank.
The Tokyo-based company's stock rose about 6.2% in intraday trading on Wednesday, the largest intraday gain since October.
E-commerce giant Alibaba ( BABA) announced on Tuesday to split into six units and explore fundraising or IPOs for most of them.
This initiative will allow the company's main divisions: Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group, and Digital Media and Entertainment Group to operate with far greater autonomy, laying the groundwork for future spinoffs and market debuts.
Following the announcement of the split, Alibaba ( BABA) shares rose 14%, bringing the company's market value to around $255B. |
