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ThreadbareHalo t1_je16ahw wrote

Hmm…. Those “hey Jack Ma is around again guys… he’s totally ok, wasn’t detained or in danger because he was getting big enough to challenge the government so you should feel good about this!” Articles’ timings seem interesting now

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bastardoperator t1_je130dn wrote

It's like shopping at a swapmeet. Looks great on display, prices are good, then you get home and realize everything you bought there was a total piece of shit.

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oroechimaru t1_je011yb wrote

How does this benefit existing share holders anyone know?

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Fwellimort t1_je0huu2 wrote

Shareholders generally get all the parts split up to different shares.

eg: say there's a company worth $10 in stock and is being split up to 3 different parts. Shareholder's $10 can become $3 $5$1 shares and maybe $1 went out from dilutions (IPO).

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Andrige3 t1_je13sx8 wrote

Who knows where China is going to allow these to IPO though which could dramatically change valuations. I feel like splitting it up also makes it a weaker business since a lot of these businesses have an important network effect. Imagine if you broke up Amazon into a shipping business, a media studio, an online retailer, a media company, a cloud business, etc. I think it would be a worse user experience and worse from an investment perspective.

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Fwellimort t1_je14qd8 wrote

I think the difference is Alibaba is so undervalued that the valuation currently is at the value of some businesses not existing at all.

But yes, long term as a business, not as good. But stock market is auction driven and the stock is being penalized for being too successful of a conglomerate currently (due to China risk which isn't going away).

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Andrige3 t1_je15ow1 wrote

It seems like all the China stocks are being undervalued due to political risk right now and uncertainty of regulations. I don't see how splitting the company changes this risk. This also doesn't change delisting fears. Also I think it's going to force a lot of sales if it IPOs on hong Kong stock exchange rather than NYSE.

I guess only time will tell but I'm glad I don't own baba right now even it had a burst up in the short term. I want stocks for the long term.

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CurriedFarts t1_je16k0z wrote

I think Xi and company reluctantly realized they need leaders like Ma to bolster China's AI efforts, which seem to be slipping as of late, but they split up the Alibaba empire to save face and make it known they hold the reigns.

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BeholdZeal t1_je1jie8 wrote

China pulling Teddy Roosevelts while corporate consolidation continues in the US unabated. Jack Ma was a 996 piece of shit and had it coming for a long time.

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