Jack Ma and Joe Tsai Surpass SoftBank as Top Alibaba Shareholders

Jack Ma and Joe Tsai, Alibaba Group's co-founders, have claimed the top spots as the largest shareholders of the company, surpassing SoftBank Group’s holding. Both Ma, who stepped down as executive chairman in 2019, and Tsai, who currently holds the chairmanship, have significantly increased their stakes by purchasing Alibaba shares during market downturns in New York and Hong Kong.

Acquisition Amidst Stock Tumble

Amid Alibaba's stock falling by 11% in the fourth quarter, Ma invested approximately US$50 million in Alibaba's shares. This move increased his ownership to over 4.3%, making him the single largest shareholder. Tsai, using his family investment firm Blue Pool Management, bought 1.957 million Alibaba shares for US$151.7 million, making him the second-largest shareholder. This was a substantial raise from his 1.4% stake reported in the previous year.

SoftBank's Decreased Stake

SoftBank, once Alibaba’s largest shareholder, has seen its shares dwindle due to the use of forward contracts from about 7% in December 2022 to less than 0.5% as of May 2023. This reduction in SoftBank’s stake comes after years of Alibaba battling regulatory challenges, including the halting of Ant Group’s IPO and antitrust fines.

Alibaba's Challenges and Shares Rebound

Alibaba's journey has been marked by challenges since China's regulators thwarted Ant Group's IPO. The e-commerce titan was also subject to a record fine and went through multiple restructurings in compliance with China's antitrust laws. As a result, Alibaba's stock price nosedived 75% from its high of US$300 to about US$70 in New York. However, there was a recent uptick in the stock price, with shares rebounding by 7.8% in New York and 5.8% in Hong Kong.

A Brighter Horizon for Alibaba?

Despite shifts in investor confidence and intense competition in the e-commerce sector, Alibaba's co-founders remain optimistic about the company's future. The new CEO, Eddie Wu Yongming, is focusing on artificial intelligence and service improvements, aiming to revitalize Alibaba's growth trajectory. In addition, the recent stake increases from Ma and Tsai underscore their commitment to and belief in Alibaba's resilience and potential for a turnaround.

Alibaba, shareholders, SoftBank