Topline
Alibaba cofounder Jack Ma endorsed the Chinese giant’s sweeping restructuring efforts and praised company leadership in a memo to employees, according to news reports, prompting a surge in shares and marking a rare return to the spotlight for the billionaire after spending years lying low in the wake of a dramatic clash with Beijing.
Ma, one of China’s wealthiest people, said Alibaba had made “countless mistakes” in the past
Key Facts
Ma, in a roughly one-page memo posted on the company’s internal forum, praised last year’s decision to overhaul the company and split Alibaba into six different business units.
“We hacked away at the big-company disease,” Ma wrote, according to the South China Morning Post, adding that the company has been transformed from a “cumbersome organization into” a “simple and agile” one that puts efficiency and the market first.
Ma acknowledged Alibaba had made “countless mistakes” in the past and would doubtless make more in the future but stressed the key to facing problems is “not to deny the past, but to find the way responsibly to the future.”
The many internal and external pressures heaped on the company over the past year following a series of failures, flip-flops and intense regulatory scrutiny from Beijing has brought about the “birth of a strong and brave Alibaba team,” Ma wrote, according to Reuters.
The cofounder praised the leadership of CEO Eddie Wu and Chairman Joe Tsai—which he said displayed “admirable courage and wisdom”—for helping restore direction at a time of deep uncertainty over the company’s future.
Alibaba shares in Hong Kong were up more than 5% after the post.
Key Background
The memo is reportedly the longest posted by Ma on the company’s internal systems in five years. While Ma retired from Alibaba in 2019 and stepped down from his role as executive chair, the charismatic cofounder is still held in high esteem by many at the company and remains one of its largest single shareholders. His missive will provide a much needed morale boost for staff, which chair Tsai, also a cofounder, recently admitted has been sinking over the past few years. It strikes a markedly different tone to an earlier memo Ma issued several months ago. While perhaps intended as encouragement, Ma’s post urging the company to “correct its course” and embrace reform merely added to confusion over Alibaba’s future direction. The memo was widely seen as the start of a gradual return to public life for the Ma following years spent away from the company’s day-to-day operations, and from public life in general, following a fallout with Beijing’s elite, regulators and Chinese leader Xi Jinping. There had been much speculation over Ma’s wellbeing and whereabouts following his departure from the company and his travels abroad were documented in areas like Japan and Europe. Many of his rare appearances have suggested a potential return to his roots as an educator, rather than reclaiming his position as a titan of business.
Forbes Valuation
Ma has an estimated net worth of $24.5 billion. He is the 81st richest person in the world and the 7th richest in China, according to our real time tracker. Ma, a former English teacher, cofounded Alibaba in 1999. The company is now one of the world’s largest e-commerce businesses and is the source for much of Ma’s wealth. Ma also holds a stake in fintech giant Ant Group.
Further Reading
Alibaba Billionaire Jack Ma Steps Back Into Spotlight—But As A Teacher, Not A Tech Mogul (Forbes)
Alibaba Shares Slump After SoftBank Reportedly Offloads Majority Stake (Forbes)
