SUSANNAH STREETER, HEAD OF MONEY AND MARKETS AT UK-BASED HARGREAVES LANSDOWN However, this split would allow investors to pick and choose areas where that risk is at the lowest." "It is likely that the geopolitical risks associated with Alibaba will persist as long as the tensions between China and the U.S. This could potentially allow each entity to operate under a more manageable regulatory framework, rather than having one large entity that may be subject to more stringent regulations. "I think Alibaba is pursuing easier regulation by splitting its business into six entities. OSHADHI KUMARASIRI, ANALYST AT LIGHTSTREAM RESEARCH, WHO PUBLISHES ON SMARTKARMA "It also takes any residual regulatory overhang off the table as six smaller species pieces can fly under the radar, versus one behemoth." "This is the ultimate value unlock and this is going to enable the sum of the parts valuation to be realised much more quickly as you'll have faster growing business segments that will ultimately be awarded much higher multiple by the market when they're either IPO or spun to shareholders. ![]() ![]() Here are comments from analysts: THOMAS HAYES, CHAIRMAN AT GREAT HILL CAPITAL, NEW YORK
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