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Alibaba Group Holding Ltd. (NYSE:BABA) co-founder Jack Ma has reportedly resurfaced with a comprehensive internal memo, stirring speculation about his future role in the company.
What Happened: Ma has emerged with a detailed message to his staff, hinting at a more prominent role after years of low public visibility, Reuters reported on Tuesday.
The internal memo, Ma’s most extensive communication within Alibaba in five years, was shared on the company’s forum. It follows Alibaba’s decision last year to restructure into six separate units, the most significant overhaul since its inception.
Following the memo’s release, Alibaba’s Hong Kong-listed shares experienced a 5% increase. Ma’s note commended the leadership of CEO Eddie Wu and Chairman Joe Tsai, acknowledging the company’s past errors and emphasizing the need for timely corrections and future reforms. This internal endorsement comes as Alibaba has faced challenges, including a CEO change, halted unit listings, and increased competition in e-commerce.
Ma’s re-engagement with Alibaba’s operations is noteworthy, considering his previous public criticism of Chinese regulators in 2020, which led to severe repercussions for him and the tech sector. Since then, Ma has spent significant time overseas, particularly in Japan, distancing himself from the limelight.
Why It Matters: The reappearance of Jack Ma and his active communication within Alibaba could signal a strategic shift for the tech giant. Ma played a pivotal role in the company’s restructuring from abroad, amid a regulatory crackdown in China and fierce market competition. This move was seen as a way to adapt to the changing business environment and regulatory landscape.
Earlier this year, Ma and co-founder Tsai reignited investor confidence by purchasing Alibaba shares worth hundreds of millions of dollars, leading to a surge in the company’s stock value. This action demonstrated their commitment to the company’s future and possibly hinted at Ma’s return to a more active role.
Furthermore, Ma’s previous endorsement of rival PDD Holdings was met with investor skepticism, as evidenced by a surge in bearish bets against the company.
Image via Shutterstock
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Posted In: BABA
