Alibaba’s Breakup Shows Global Tech Firms How to Unlock Value
- ADRs soar on plan to split off units into standalone companies
- US tech giants also face higher scrutiny, calls for partitions
This article is for subscribers only.
A plan to split Alibaba Group Holding Ltd. into six units sent the company’s stock soaring Tuesday while introducing a potential model for global tech giants facing mounting breakup pressures.
Alibaba’s American depositary receipts climbed as much as 15% on Tuesday, its best performance since June, after the company announced a plan to separate its $255 billion empire into divisions that will raise funds individually and eventually explore initial public offerings.