Saturday, February 17, 2024
HomeBUSINESSFollowing a stock market decline, Jack Ma backs off his plans to...

Following a stock market decline, Jack Ma backs off his plans to sell Alibaba shares

Jack Ma, the founder of Alibaba Group Holding Ltd., has postponed plans to sell shares valued at millions of dollars

Jack Ma Put off his Plans

After Alibaba’s stock fell precipitously last week, Jack Ma decided to postpone his plans to sell hundreds of millions of dollars’ worth of shares in the Chinese tech giant. According to two regulatory filings made last Thursday. Ma had been considering the sale of 10 million shares, or approximately $871 million. However, the billionaire has not sold “a single share,” as per a post made on the company’s internal forum on Wednesday by Jane Jiang Fang. Chief People Officer of Alibaba (BABA), because the company’s stock price has dropped short of his expectations.

Initial Plans

According to the documents, the sales were originally scheduled to occur this Tuesday through JC Properties and JSP Investment. Two businesses connected to Ma and his charitable foundation. The anticipated sales were disclosed on the same day that Alibaba released its third-quarter earnings report. At that time, the company had revealed that it was abandoning its ambitions to spin off its cloud computing division, in part because of unpredictability around US restrictions on chip shipments to China. Alibaba’s market value was wiped out on Thursday as its shares fell 9% in New York and nearly 10% in Hong Kong on Friday.

Alibaba’s stock has decreased by more than 10% so far this year. According to Jiang, the timing of the two pieces of news was only a “coincidence.”

This News Triggered Rumors

Jiang urged staff members to discount rumors that Ma had lost faith in the company. Which had been sparked by the news of the sale. According to the executive, the transactions were a part of a long-term plan that was announced in August. Allowed Ma’s office to engage in welfare and agricultural technology initiatives both inside and outside of China. Ma stated that she will not be selling the Hangzhou-based company’s stock. Since it “is currently significantly lower than Alibaba’s actual value.”

Chairman of Alibaba Joe Tsai added his voice as well, stating in a remark on the same post that was viewed by CNN that he had “full confidence” in the business.

Jack Ma’s Office

Despite plans for “a partial sell-down,” Ma’s office told the South China Morning Post, an Alibaba-owned newspaper in Hong Kong. On Friday that he was still “very positive” about the company’s prospects. Requests for comment on the situation, including whether the share sale would go through if the company’s stock price increased, were not immediately answered by Alibaba or Ma’s foundation.

The company is presently undergoing a significant reorganization that was first planned to divide it into six distinct units, each with a board of directors and chief executive officer. This restructuring was first announced in March. However, Alibaba announced this week that it would reconsider its plans for both the listing of its supermarket chain Freshippo and its cloud company.

Alibaba

Alibaba was founded by Ma in 1999. In 2019, he resigned from his position as the company’s chairman. One year before he ran afoul of Chinese authorities for disparaging Chinese banks and financial regulators. The businessman has been an Alibaba stakeholder ever since, but he has maintained a somewhat low profile.

 

 

 

 

 

The MYI News World is source for the latest news, blogs, informative articles, job updates, and a wealth of valuable information. We recognize your need for access to current, clear, and reader-friendly content, and that’s precisely what MYI News World provides.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

canadian pharmacies shipping to usa on Internet Revolution Effects on Honey Bees
Translate »