Alibaba Group will spin-off its mobile operating system (OS) development team from its Aliyun subsidiary. This announcement follows the cancellation last week of the Alibaba-Acer smartphone launch.

According to an internal memo from company CEO Jack Ma, the Alibaba Group will invest US$200 million to expand the mobile OS team. The smartphone launch and news conference was cancelled at the last minute as Google stepped-in to halt what Google deemed to be a breach of its Android Open Handset Alliance agreement by Acer.

Business Strategies Group Hong Kong –