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Is Jack Ma Trying To Pull Alibaba Group Holding Ltd (BABA) Staff Out Of Complacency With ‘Dangerous Moment’ Comments?

Alibaba Group Holding Ltd (NYSE:BABA)’s CEO Jack Ma feels that company is facing its most dangerous moment now. What does he mean by that? Also Alibaba is all set for its inaugural bond issue today and expecting to raise as much as $8 billion to close some of its loans. Bloomberg’s Lulu Chen talked on Bloomberg TV about significance of Alibaba Group Holding Ltd (NYSE:BABA)’s bond issue and Ma’s statement about the dangerous moment for Alibaba.

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Chen reported that Alibaba Group Holding Ltd (NYSE:BABA) is selling its bond in a 7 part series of offerings. She mentioned that Alibaba has already received orders for $20 billion from US investors. She pointed out that Alibaba was trying to market only $8 billion worth bonds for the offering. She added that Alibaba will be using part of the proceeding to refinance some of the loans and credit lines worth around $ 11 billion.

 Jack Ma has been saying that Alibaba Group Holding Ltd (NYSE:BABA) is facing its most dangerous moment, mainly because the expectations are huge on the company. Chen pointed out that this is not the first time Ma has said something like this. She said that the context of Ma’s statement might be to imply that the expectations on the company has grown significantly since its IPO, and people are expecting a lot from Alibaba. She mentioned about Ma’s feeling that growing expectations are pushing the company into a dangerous situation.

“[…] Now the context for Jack Ma saying this is that, he was saying that before the IPO nobody thought that the company could make money. But now the problem for him is that, people think that they are too great that they can do anything and that’s a dangerous moment for the company,” Chen said.

She added that Jack Ma had said similar statement before to get the Alibaba Group Holding Ltd (NYSE:BABA)’s staff out of complacency. She feels that his statement on dangerous situation might also be for pulling the staffs out of complacency, which might let the company miss on an opportunity for innovation in the mobile age. She feels that this might be a remainder to his staff.

Disclosure: None

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