Nets owner Joe Tsai named Alibaba’s new chairman
Alibaba, the Chinese e-commerce giant, announced on Tuesday that co-founder Joe Tsai will take over as chairman of the company. Tsai, who owns the Brooklyn Nets and has a reported net worth of $7.7 billion, will replace Daniel Zhang, who stepped down to focus on Alibaba’s cloud division. Tsai, a Yale graduate, helped launch the company in 1999 and served as CFO until 2013 before becoming the executive vice chairman. He also owns a stake in the Nets and the Barclays Center. Zhang, who joined Alibaba in 2007, played a key role in the company’s annual “Singles Day” shopping festival before becoming CEO in 2019. He will be replaced as CEO by Eddie Yongming Wu, a fellow co-founder who was previously the chairman of Alibaba’s subsidiaries, Taobao and Tmall Group.
The executive shuffle will take effect on September 10th. Former Alibaba employee Brian Wong praised the decision to let Zhang focus on the cloud division, saying it shows confidence in him. Analysts estimate Alibaba’s cloud unit to be worth between $41 billion and $60 billion. However, concerns have been raised by regulators regarding Alibaba’s large-scale cloud services, which is the biggest platform of its kind in China. Alibaba’s US-listed shares dropped 2.48% in premarket trading after the announcement.
Alibaba’s reshuffling comes amid a crackdown on regulations in China’s tech sector. Zhang has held the positions of CEO and chairman since 2015 and 2019, respectively. The company is currently undergoing a restructuring, dividing its business into six independently-run entities, each with its own CEO and board of directors. This move addresses concerns from the Chinese Communist Party about the growing power and influence of Alibaba and other tech firms.
FAQs:
Who is Joe Tsai?
– Joe Tsai is a co-founder of Alibaba and the owner of the Brooklyn Nets. He has a net worth of $7.7 billion.
Who is Daniel Zhang?
– Daniel Zhang is a co-founder of Alibaba and served as CEO and chairman of the company until he stepped down to focus on Alibaba’s cloud division.
Who will replace Daniel Zhang as CEO?
– Eddie Yongming Wu, a fellow co-founder, will replace Daniel Zhang as CEO of Alibaba.
What is Alibaba’s cloud division?
– Alibaba’s cloud division oversees large-scale cloud computing services and is considered the biggest cloud services platform in China.
Why did Daniel Zhang step down as CEO?
– Daniel Zhang stepped down as CEO to focus on Alibaba’s cloud division.
What is the significance of Alibaba’s restructuring?
– Alibaba’s restructuring involves splitting its business into six independently-run companies, with each company having its own CEO and board of directors. This addresses concerns about the company’s power and influence in China’s tech sector.
Why did Alibaba’s shares drop after the executive shuffle announcement?
– Alibaba’s shares dropped due to concerns and regulatory scrutiny over its cloud services and the ongoing tech crackdown in China.
Is Joe Tsai the new chairman of Alibaba?
– Yes, Joe Tsai is taking over as chairman of Alibaba.
Joe Tsai, owner of the Nets, appointed as Alibaba’s new chairman
Alibaba, the Chinese e-commerce giant, announced on Tuesday that billionaire owner Joe Tsai will take over as chairman of the company. Tsai, who has a reported net worth of $7.7 billion, replaces Daniel Zhang, who stepped down to focus on Alibaba’s cloud division. Tsai, a Yale graduate and co-founder of Alibaba, played a key role in the company’s early days and served as its chief financial officer before becoming executive vice chairman. He’s also known for his ownership of the Brooklyn Nets, for which he paid $1 billion in 2017.
Zhang, who joined Alibaba in 2007, is credited with pioneering the company’s annual “Singles Day” shopping festival. He took on the CEO role in 2019 and became chairman the same year. Eddie Yongming Wu, another co-founder, will take over as CEO, while Tsai assumes the role of chairman.
The leadership shuffle will take effect on Sept. 10 and is seen as a strategic move to focus on Alibaba’s cloud division, which analysts estimate to be worth between $41 billion and $60 billion. However, the company’s cloud computing services have also raised concerns from regulators in China and abroad. Alibaba’s US-listed shares dipped 2.48% in premarket trading following the announcement.
Alibaba’s reshuffling comes amidst a broader crackdown on regulations in China’s tech sector. The company is currently undergoing a significant governance overhaul, splitting its business into six independently-run companies. This restructuring aims to address concerns about the growing power and influence of Alibaba and other tech giants in China.