Alibaba founders Jack Ma, Joe Tsai appear in Hangzhou in show of confidence amid corporate reshuffling

Through the leadership reshuffling, long-time associates of Ma, 58, are returning to top corporate roles at the tech giant.

“We see many former veterans returning to the frontline … which means Alibaba has made major adjustments after Jack Ma’s return,” said Cao Lei, director of e-commerce research institute 100ec.

“Alibaba’s latest market value is just two-fifths of its highest level,” he said. “Tsai needs to do better in its market value management, and continue to tell the story that Alibaba is a technology company.”

Tsai, who joined Alibaba when it was founded in 1999, was appointed in May as chairman of Cainiao. Alibaba established the logistics business in 2013, and it aims to complete an IPO in the next 12 to 18 months, according to the company.

Tsai is also on the board of Taobao & Tmall Group, the only unit over which Alibaba will maintain exclusive ownership. Eddie Wu Yongming, an associate of Ma’s from before Alibaba was incorporated, is chairman of the group and will succeed Zhang as Alibaba Group CEO. Tsai has board seats with Alibaba’s local services unit and international e-commerce group, as well.

When he takes the reins as chairman in the autumn, Tsai will be returning to managing the company he helped start for the first time since leaving as head of strategic investment in 2019. Tsai previously served as Alibaba’s chief financial officer until 2013. More recently, he turned his attention to sports with his 2018 acquisition of the Brooklyn Nets, a National Basketball Association team in New York.

“Alibaba is likely to be transformed into a financial holding company, just like the direction taken by many large consortiums in the past,” said Zhang Yi, chief executive of Guangzhou-based iiMedia Research. “Tsai’s main career has been related to finance and strategic investment, so his ability and experience would fit well in the new stage.”