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Oriental Selection Sells Education Arm for 1.5B in Group Reorganization

December 29, 2023
in Technology
Oriental Selection Sells Education Arm for 1.5B in Group Reorganization
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On December 27, Oriental Selection, a live-streaming ecommerce company under the US-listed New Oriental Group, announced that it will sell its education business for a total price of 1.5 billion yuan to its parent company. The sale is part of a broader reorganization of the New Oriental Group’s business, aimed at more clearly defining its business lines and better aligning its business departments with the operating environment, according to the announcement. 

Following the restructuring, Oriental Selection will cease its online education operations to concentrate on live streaming ecommerce business. This move is expected to allow the company to allocate resources more efficiently within a specific industry, which could lead to greater financial returns for shareholders.

The restructuring will also provide a clearer division of business lines, enabling better assessment of each group’s market position and performance. 

Oriental Selection also promised in the announcement taht Investors will have the choice to decide their investment focus between the education sector and the e-commerce business. This move is significant as it allows investors to navigate the regulatory and market environments more effectively.

Recently, Oreintal Selection has been in the public spotlight because of the so-called “short essay” controversy. A statement claiming that Oriental Selection’s promotional content was a team effort sparked backlash from fans of the company’s most popular livestreaming host, Dong Yuhui – who felt it undermined Dong’s contribution. This led to public debate, loss of fans, a drop in stock price, and the dismissal of the company’s CEO, Sun Dongxu.

As of the close on December 27, Oriental Selection closed at 26.85 Hong Kong dollars, a decline of 6.93%.

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