Who is the billionaire tasked with steering Alibaba through the storm?

Joseph Tsai, billionaire co-founder of Alibaba Group and owner of the Brooklyn Nets, will take over as chairman of the e-commerce giant to revive growth as it faces increasing competition amid a sluggish recovery from the COVID-19 pandemic.

As part of a management shake-up, it was announced in a surprise move that Tsai, 59, will replace Daniel Zhang as chairman of Alibaba's board of directors.

Outgoing CEO Daniel Zhang will focus on leading Alibaba's cloud computing business as the unit prepares for an initial public offering that could take place early next year, Alibaba said recently.

Co-founder Jack Ma, now China’s seventh-richest person with a net worth of $24 billion, appeared yesterday at the Hangzhou office of Alibaba’s cloud computing arm, according to a person with knowledge of the matter, having gradually stepped down from his Alibaba role in 2019 to focus more time oneducation and philanthropy.

Analysts say Mr Tsai, a longtime close friend of Jack Ma, may seek to fend off competition from companies like Pinduoduo by implementing a strategy outlined by the tycoon at a recent meeting.

That strategy could be to charge less from sellers and sell more low-cost products to attract users, said Charlie Chai, an analyst at Shanghai-based 86 Research.

Tsai, who was born in Taiwan and holds a Canadian passport, also maintains a relatively hands-off approach to management and may let middle managers make more decisions, said Shawn Yang, managing director of Shenzhen-based Blue Lotus Capital Advisors. But investors are taking a wait-and-see attitude — after Alibaba’s New York-listed shares fell 4.5% overnight.

In fact, the $230 billion company has lost more than 70% of its value since peaking in late 2020, as China’s regulatory woes over the entire internet industry have caused investors to reassess Alibaba’s prospects. In addition to the fast-growing Pinduoduo, short- video platform Douyin is also trying to sell products that appear in some of its streams.

While Jack Ma spent years “lying low and traveling abroad” after his personal opinions were divided, Tsai continued to serve as executive vice chairman. He was part of Alibaba’s founding team, leaving Hong Kong-based private equity firm Investor AB, the main investment vehicle of Sweden’s Wallenberg family, to join the Hangzhou-based e-commerce company in 1999 for a monthly salary of just $50.

In the following years, he became chief financial officer, a position he held until 2013. Next, he began the role of executive vice president, responsible in part for the e-commerce giant's financial operations and strategic investments.

But the tycoon is also diversifying his assets, with plans to sell about $260 million in Alibaba shares to the public by the end of 2022.

Tsai still makes part of his $7.7 billion net worth from his 1.3% stake in Alibaba, but he has also built a sports and entertainment empire.

Tsai took full control of the Brooklyn Nets in a $2.35 billion deal in 2019 after initially buying a 49% stake from Russian billionaire Mikhail Prokhorov two years earlier. His other sports franchises include ownership of the New York Liberty from the Women's National Basketball Association and two volleyball teams, the San Diego Seals and Las Vegas Desert Dogs.

Who is the billionaire tasked with steering Alibaba through the storm? - 2 — Billionaire Josept Tsai watches his Brooklyn Nets play the Milwaukee Bucks at Barclays Center on October 8, 2021 in New York, US. (Photo: Getty)

The billionaire's passion for sports can be traced back to his high school days, when he played soccer and lacrosse at the elite Lawrenceville School in New Jersey, before being accepted to Yale University.

Tsai, who holds a BA in economics and East Asian studies from Yale University and a JD from Yale Law School, also played for the university's volleyball team. His early career experience includes working as an associate attorney at New York-based law firm Sullivan & Cromwell LLP, and as general counsel at New York-based acquisition firm Rosecliff, Inc.

Today, a significant portion of the tycoon's fortune is managed through his Hong Kong-based family office Blue Pool Capital, which holds Tsai's stocks, venture investments and sports assets.

The company also emerged in 2021 as the buyer who paid $188 million for a New York penthouse formerly owned by billionaire Dan Och.

Meanwhile, Blue Pool was one of the backers of the now-defunct cryptocurrency exchange FTX, according to the South China Morning Post. Tsai has also made other blockchain and cryptocurrency-related investments through Blue Pool, including stakes in Web3 company Artifact Labs and blockchain exchange Aver.

Duong Vien (Source: Forbes)

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