Alibaba splits into six units, plans new IPOs in historic overhaul

Alibaba Group Holding Ltd. plans to split its $220 billion empire into six units that will individually raise funds and explore initial public offerings, the biggest overhaul of China’s online commerce leader since its inception more than two decades ago.

The move frees up the Chinese company’s main divisions from e-commerce and media to the cloud to operate with far more autonomy, laying the foundation for future spinoffs and market debuts. Its shares climbed 8% in pre-market trading in New York.

The shift to a holding company structure is rare for major Chinese tech firms and could present a template for Alibaba’s peers.