Jack Ma Plans To Cede Control of Ant Group

Billionaire Jack Ma plans to relinquish control of Ant Group, WSJ reported Thursday, citing people familiar with the matter, part of the fintech giant's effort to move away from affiliate Alibaba Group after more than a year of extraordinary pressure from Chinese regulators. From a report: The authorities halted Ant's $34 billion-plus IPO in 2020 at the eleventh hour and are forcing the technology firm to reorganize as a financial holding company regulated by China's central bank. As the overhaul progresses, Ant is taking the opportunity to reduce the company's reliance on Mr. Ma, who founded Alibaba. Mr. Ma, a 57-year-old former English teacher and one of China's most prominent entrepreneurs, has been the target of government action that appears designed to reduce his influence and the power of his companies. He has controlled Ant since he carved its precursor assets out of Alibaba more than a decade ago. Over time he built it into a company that owns the Alipay payments network with more than one billion users, an investing platform that houses what was once the world's largest money-market fund, and a large microlending business. Ant was expected to be valued at more than $300 billion had it gone public. Diminishing his ownership could put back a potential revival of Ant's IPO for a year or more. Chinese securities regulations require a timeout on public listings for companies that have gone through a recent change in control.

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