Alibaba Cloud Unit CEO Daniel Zhang Steps Down in 2025 Ahead of $41-$60 Billion IPO
Daniel Zhang, former Alibaba CEO, resigns as head of the cloud division amid restructuring ahead of its highly anticipated IPO, stirring market concerns.
Alibaba (BABA) shares experienced a 1.17% decline in early trading on Monday following the unexpected resignation of Daniel Zhang as head of Alibaba's cloud business, just two months after he shifted his focus to this division amid a major corporate restructuring ahead of its initial public offering (IPO).
Key Highlights
- Daniel Zhang steps down as CEO of Alibaba's Cloud Intelligence Group.
- He had assumed leadership of the cloud unit only two months prior.
- Alibaba ADRs dipped as Zhang's sudden departure raised investor concerns about the upcoming cloud unit IPO.
Alibaba's Cloud Intelligence Group, valued between $41 billion and $60 billion, ranks as the company's second most profitable segment. It is slated to be the first among five newly established business units within Alibaba Group to go public in 2024.
Eddie Yongming Wu, previously designated to become Alibaba Group’s CEO and director, will now assume the roles of chair and CEO of the cloud division.
During Zhang’s eight-year leadership, Alibaba grew into China’s largest company, launching successful ventures including physical retail, which became the group’s fastest-growing business. However, the company has faced intensified regulatory scrutiny of China’s internet sector in recent years.
Notably, the cloud division reported a 2% revenue decline from January to March 2024, partly due to project delays, marking a rare downturn in its growth trajectory.
Post-resignation, Zhang will continue supporting Alibaba by managing a $1 billion technology investment fund established by the group.
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