Jack Ma Delays Alibaba Share Sale Amid Stock Slump

Jack Ma Delays Alibaba Share Sale Amid Stock Slump

Chinese billionaire Jack Ma has postponed plans to sell millions of dollars worth of Alibaba shares following a significant drop in the company’s stock value last week. Two regulatory filings from Thursday revealed Ma’s intention to offload 10 million shares, valued at nearly $871 million, through entities linked to him and his philanthropic foundation. However, due to Alibaba’s stock price falling below Ma’s expectations, he has not sold a single share, according to Alibaba Chief People Officer Jane Jiang Fang.

JC Properties and JSP Investment scheduled the proposed share sales for this Tuesday. The disclosure coincided with Alibaba’s third-quarter earnings report, where it announced the abandonment of plans to spin off its cloud computing arm, citing uncertainties caused by US controls on chip exports to China. This announcement led to a 9% drop in Alibaba’s stock in New York on Thursday and a nearly 10% decline in Hong Kong on Friday, resulting in a $20 billion loss in the company’s market value.

While the intended share sale news sparked rumors that Ma had lost confidence in Alibaba, Jiang emphasized that it was part of a long-term plan outlined in August. The plan aims to enable Ma’s office to invest globally in agricultural technology and welfare projects. Ma believes that Alibaba’s stock is currently undervalued, and he has no plans to sell it at its current value.

Alibaba Chairman Joe Tsai expressed full confidence in the company, dismissing speculation about Ma’s intentions. In response to the rumors, Ma’s office said he remains positive about Alibaba’s prospects despite the partial sell-down plans. The company is undergoing a significant restructuring, initially announced in March, intending to split into six separate units. Last week, Alibaba reconsidered plans for its cloud business and the listing of its grocery chain Freshippo, citing the need to evaluate market conditions.

Jack Ma, who founded Alibaba in 1999, stepped down as chairman in 2019. Since then, he has maintained a relatively low profile but remains a significant Alibaba shareholder. The recent events highlight the challenges faced by Alibaba amid regulatory uncertainties and the evolving market landscape.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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