Alibaba Group Holding Ltd (NYSE:BABA) has shaken up its leadership, naming Daniel Zhang as its new Chief Executive Officer (CEO), according to an Alibaba statement.
The move comes on the heels of a recent Q1 2015 earnings report that saw a 45% QoQ increase in revenue. Mr. Zhang will be replacing Jonathan Lu, who despite relinquishing the role will remain with the company on the board as it’s vice chairman.
Mr. Zhang was the subject of a recent move back in September, having been elevated to the role of Chief Operating Officer (COO) after a standout performance for the Chinese e-commerce behemoth.
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It will be interesting to see the direction Mr. Zhang takes the company in, namely as it has rescinded nearly $90 billion in market cap since its peak in the fall of 2014. According to Mike Clendenin, managing director of RedTech Advisors in a recent statement to Reuters on the appointment, “Perhaps Jack is sending a signal to the capital markets and the regulator that he’s willing to make changes.”
Mr. Zhang initially joined Alibaba as its Chief Financial Officer (CFO) of Taobao Marketplace in August 2007. The shakeup at the CEO position can largely be attributed to Alibaba’s bid to promote young and upcoming talent, Executive Vice Chairman Joseph Tsai noted in a conference call.