Alibaba Group Chairman and CEO Daniel Zhang announced that he would dedicate his full attention to Alibaba Cloud Intelligence Group as its spin-off is underway, in an internal memo to employees on Tuesday.
The Alibaba Group board of directors approved Zhang’s plan to transition from the role of Chairman and CEO of Alibaba Group, and appointed Joseph C. Tsai, current Executive Vice Chairman, to succeed Zhang as Chairman and Eddie Yongming Wu, Chairman of Taobao and Tmall Group, to succeed Zhang as Chief Executive Officer and director of the board.
The above changes and appointments will take effect on Sept. 10, 2023.
Zhang will continue to lead Alibaba Cloud Intelligence Group as its Chairman and CEO, and Wu will continue to oversee Taobao and Tmall Group as its Chairman in addition to the role he will assume as Alibaba Group CEO.
“Daniel has made exceptional contributions to the development of Alibaba Group since joining the company in 2007, and he demonstrated extraordinary leadership in navigating unprecedented uncertainties affecting our business over the past few years. We believe there is no better leader than Daniel to steer Alibaba Cloud Intelligence Group into the next chapter of its journey and future growth,” said incoming Chairman Tsai.
“It has been an incredible honor and privilege to lead Alibaba Group as CEO over the past eight years and Chairman over the past four years. This is the right time for me to make a transition, given the importance of Alibaba Cloud Intelligence Group as it progresses towards a full spin-off,” said Zhang.
Alibaba Cloud Intelligence Group Spin-Off
The transition announcement comes three months after Alibaba introduced its most significant organizational transformation into the “1+6+N” model.
During its latest earnings announcement, Alibaba unveiled the composition of the board of directors for each of the six major business groups. It disclosed its plan for a series of significant transactions. The plan includes the full spin-off of the Alibaba Cloud Intelligence Group that will see it become an independent listed company, the IPOs of Cainiao Smart Logistics and Freshippo, and external capital raising for Alibaba International Digital Commerce Group (all of which are subject to relevant conditions and regulatory approvals).
Wu was the Chief Technology Officer of key businesses, including Taobao and Alipay, during Alibaba’s key phases of development. He was the chief architect of Alibaba’s technology platforms and served as general manager of Alimama, Alibaba’s proprietary monetization platform on Taobao and Tmall. Wu spearheaded the launch of the Mobile Taobao app, which heralded the company’s successful transition to the mobile-first era, according to an Alibaba statement.
“I look forward to working with Eddie to spark our next phase of growth through technology and innovation,” said Tsai.
“I am grateful for the trust of the Alibaba Group board of directors and am honored to succeed Daniel as Alibaba’s CEO,” said incoming CEO Wu.
“Over the past 24 years, Alibaba has consistently innovated through evolution and breakthroughs from within, and each transformation has catalyzed new growth. While our current transformation brings a new corporate organizational and governance structure, Alibaba’s mission remains unchanged. We will continue to enable individuals and businesses to benefit from the digital economy and serve our customers with unique value proposition supported by innovation and our leading technology,” said Wu.
Until Sept. 10, Tsai and Wu will work closely with Zhang on the transition and continue to refine the “1+6+N” model. The incoming senior management team will work closely with the board of directors on capital management and risk and compliance under the new corporate governance structure through the committees established by the board announced in May.
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