Reuters reported on Wednesday that Chinese tech giant, Alibaba’s (NYSE: BABA) work communication and collaboration platform, DingTalk, could split from the company’s cloud division, marking a strategic shift in its operational framework.
The report cited unknown sources as stating that while the exact timeline of the separation is not clear, a Chinese media outlet Caixin reported that DingTalk is likely to launch its own IPO in the near future. If DingTalk does separate from Alibaba, it is likely to function as a wholly-owned subsidiary of Alibaba Holding Group. Even after the split, DingTalk is anticipated to maintain a close technological collaboration with Alibaba’s cloud division.
Meanwhile, BABA’s cloud business is gearing up for its own IPO. The cloud division’s potential public offering is initially projected for May of next year.
Analysts are bullish about BABA stock with a Strong Buy consensus rating based on 15 Buys and one Hold.
