Jack Ma sells control of Chinese fintech giant Ant Group
China blocked the company's 2020 IPO after Ma made controversial statements.
Chinese billionaire Jack Ma hands over control of Alipay owner Ant Group. According to The Wall Street Journal, the Alibaba-affiliated company announced that it would terminate agreements that had given Ma a dominant position in the corporate governance structure of Alibaba. Ant Group. The outspoken entrepreneur previously owned more than 50% of the voting rights at Ant, although he did not sit on the company's board or was not involved in day-to-day operations. Ma's influenced Ant Group through a handful of investment vehicles that held a combined 50.5% stake in the fintech giant.
Going forward, Ant said Ma and nine other company executives and employees would have voting rights that they agreed to use independently of each other. Reuters estimates Ma will own 6.2% of Ant Group shares once the company implements changes announced over the weekend.
In 2020, shortly before Ant staged an initial public offering that was expected to raise a record $34 billion, Ma drew the ire of Chinese authorities after calling the country's banks " state-owned pawnshops" during a speech in Shanghai. Chinese regulators then blocked the impending IPO and ordered Ant to scale back its operations. Specifically, the company has been told to return to its roots as a payment provider. A year later, authorities fined Alibaba, Ma's other company, $2.8 billion following an antitrust investigation into alleged monopolistic practices by the company. Ma has avoided public attention ever since.
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China blocked the company's 2020 IPO after Ma made controversial statements.
Chinese billionaire Jack Ma hands over control of Alipay owner Ant Group. According to The Wall Street Journal, the Alibaba-affiliated company announced that it would terminate agreements that had given Ma a dominant position in the corporate governance structure of Alibaba. Ant Group. The outspoken entrepreneur previously owned more than 50% of the voting rights at Ant, although he did not sit on the company's board or was not involved in day-to-day operations. Ma's influenced Ant Group through a handful of investment vehicles that held a combined 50.5% stake in the fintech giant.
Going forward, Ant said Ma and nine other company executives and employees would have voting rights that they agreed to use independently of each other. Reuters estimates Ma will own 6.2% of Ant Group shares once the company implements changes announced over the weekend.
In 2020, shortly before Ant staged an initial public offering that was expected to raise a record $34 billion, Ma drew the ire of Chinese authorities after calling the country's banks " state-owned pawnshops" during a speech in Shanghai. Chinese regulators then blocked the impending IPO and ordered Ant to scale back its operations. Specifically, the company has been told to return to its roots as a payment provider. A year later, authorities fined Alibaba, Ma's other company, $2.8 billion following an antitrust investigation into alleged monopolistic practices by the company. Ma has avoided public attention ever since.
All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may earn an affiliate commission. All prices correct at time of publication.
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