March 28 Reuters Alibaba Group Holding Ltd said it plans split its business into six main units covering ecommerce, media and the cloud, adding that each of the units will explore fundraising or initial public offerings.

Alibaba39;s U.S.listed shares rose 7 in premarket trading.

Here are comments from analysts

ART HOGAN, CHIEF MARKET STRATEGIST AT B RILEY WEALTH, BOSTON

When you get to a certain size and have multiple different disciplines inside your business model, it39;s hard to have ascribed the value that would be the sum of the parts.

Alibaba planned to split into six different units to ascribe an appropriate value to each of its different units, likely makes sense if they39;re able to pull this off.

XIAOYAN WANG, ANALYST AT 86RESEARCH

We believe that the separation of Alibaba39;s businesses is a good thing for its stock price, as it will unlock value and make each business more flexible and competitive. As for regulation, we think it39;s also a positive development. After the businesses are spun off from Alibaba, the regulatory risks they face may actually decrease, rather than being subject to Jack Ma39;s personal risk. This will make it easier for investors to assess regulatory risks more clearly.

DAVID BLENNERHASSETT, ANALYST AT BALLINGAL INVESTMENT ADVISORS

This somewhat mirrors Alphabet39;s path in which it also became a Holdco for a number of operations. Sounds like a sound practice for the siloed ops to independently carve out their own…