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Zhang recently stepped down from his post as Alibaba Group CEO to take over its cloud unit
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The cloud unit is pursuing a spin off and IPO
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Zhang appears to have chosen to leave the role rather than been ousted
Just months after announcing plans to transition from his role as CEO of Alibaba Group (NYSE: BABA) to take over as head of its cloud unit, it seems Daniel Zhang is scrapping those plans altogether.
The company noted in brief press release issued this weekend that Eddie Yongming Wu, who recently stepped up to replace Zhang as Alibaba Group’s CEO, “will succeed Mr. Daniel Yong Zhang as acting Chairman and Chief Executive Officer of the Alibaba Cloud Intelligence Group, with effect from September 10, 2023.”
Wu is one of Alibaba Group’s co-founders. He initially served as the company’s technology director in 1999 and over the years has held positions as CTO of group subsidiaries Alipay and Taobao. He was appointed chairman of Taobao and Tmall Group in May.
No reason was provided for Zhang’s move, but CNBC reported the decision was his own. The company said it will continue to pursue its plans to spin off the cloud unit into a standalone business with a separate management team.
Zhang worked for Alibaba Group for 16 years, serving as CEO since 2015. The executive was tapped to lead Alibaba’s Cloud Intelligence Group as the unit pursues a spin off. In May, Zhang said he expected the transaction and the cloud unit’s public listing as an independent company to be complete within the next 12 months. It is unclear whether that timeline will be impacted by his exit.
His decision to step down comes as a surprise given the company’s plans to pursue a public offering. Alibaba Group’s stock fell about 2% after the release went live, though had recovered 1% by publication, trading at $88.76 per share.