Alibaba Breakup Begins With Spinoff of $12 Billion Cloud Arm (1)

Alibaba Group Holding Ltd. will explore initial public offerings for its logistics and grocery arms while hiving off its $12 billion cloud business, kicking off the first phase of a much-anticipated breakup to try and revive anemic revenue growth.

Watch: Alibaba will spin off its cloud business.

Source: Bloomberg

Chief Executive Officer Daniel Zhang outlined the contours of that historic shakeup for the first time, which starts with the listing of its grocery arm Freshippo as early as six months from now, before proceeding to the float of its giant Cainiao logistics arm over the next year to 18 months. Significantly, Alibaba will completely carve out the nation’s biggest ...