Alibaba’s enterprise communication and collaboration platform, DingTalk, is set to separate from the company’s cloud division.
The exact timing of the separation is unclear, and the sources did not confirm a report from Chinese media outlet Caixin suggesting that DingTalk might pursue an IPO in the near future.
Despite the split, DingTalk will remain a wholly-owned subsidiary of Alibaba, and its services will not be affected.
The platform will continue to collaborate closely with the cloud unit on technology, the report noted.
In March, Alibaba announced its plans to divide the company into six primary divisions, covering areas such as e-commerce, media, and cloud computing.
The company’s board has already approved a complete spin-off of the Cloud Intelligence Group.
In July, it was reported that Alibaba was also conducting a strategic review of its video streaming platforms, Youku and Tudou.
For Q1, revenue from Cloud Intelligence, which is working on developing AI models, increased by 4% year-over-year to RMB25.12 billion (approximately $3.47 billion).
BABA shares were down 2.12%, trading at $89.65 in premarket trading on August 16.
