Why Are Chinese Tech Companies Breaking Up? 3/31/23
TechCheck
CNBC
4.5 • 66 Ratings
🗓️ 31 March 2023
⏱️ 4 minutes
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| 0:00.0 | Time for today's tech check. First it was Alibaba now JD. Com splitting itself up |
| 0:09.6 | let's bring in Deidra boza for more on this trend. |
| 0:12.7 | Deidra, is this just coincidence? |
| 0:15.1 | It can't be. |
| 0:18.2 | Well, Chinese Big Tech, it's not that dissimilar to our own Big Tech. |
| 0:22.4 | These are sprawling empires with many different |
| 0:24.3 | businesses under one umbrella that have gained huge influence over different |
| 0:28.4 | spots of the economy and have collected a ton of data along the way. |
| 0:32.7 | No, this is not a coincidence because if this is the new playbook |
| 0:35.5 | for Chinese mega cap tech, spinoffs, etc, J.com and Alibaba, |
| 0:39.6 | they may only be the start. |
| 0:41.2 | J.D.com is the second public Chinese tech company in a week |
| 0:45.2 | to announce that it's breaking up its sprawling businesses |
| 0:47.6 | by targeting Hong Kong IPOs for property and industrial units. |
| 0:52.0 | Alibaba was just a few days ago. |
| 0:54.1 | It said it would put itself into six different independently |
| 0:58.4 | run companies that could seek separate IPOs. |
| 1:01.8 | So who else could follow? |
| 1:03.5 | Well, the biggest names in Chinese tech, |
| 1:05.5 | if they so wanted to, or if Beijing so wanted them to. |
| 1:08.9 | Take Tencent. |
| 1:09.9 | Let's take a look at its businesses. |
... |
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