Alibaba CEO Eddie Wu to take over cloud unit from Daniel Zhang
Move comes months after Zhang chose to focus solely on cloud
Cloud unit has faced weak sales growth, to IPO next year
Alibaba says cloud unit spinoff still on track
Company plans to appoint separate management team for unit

HONG KONG, Sept 11 Reuters Alibaba stock lost more than 4 in Hong Kong on Monday after exgroup CEO Daniel Zhang quit its cloud computing unit in a surprise decision that unsettled investors and raised concerns over how it may impact the subsidiary39;s spinoff plans.

Just two months since Zhang chose to relinquish other roles to focus on the cloud, new group CEO Eddie Wu will become acting CEO and chairman of a unit grappling with weak sales growth ahead of a planned initial public offering IPO next year.

The Cloud Intelligence Group is Alibaba39;s secondbiggest revenue source after domestic ecommerce and houses the group39;s generative artificial intelligence model Tongyi Qianwen and messaging app Dingtalk.

The unit39;s revenue fell for the first time in JanuaryMarch, by 2, due to delayed projects and other factors. Still, analysts estimate it is China39;s largest cloud provider with a 34 market share.

With an estimated value of 41 billion to 60 billion, the unit is heading for a bumper IPO. However the reams of data it oversees could put it in regulatory crosshairs as data security and geopolitical concerns grow, analysts said.

The company said it will continue its plan to spin…