Alibaba Sells Game Unit for Over $2 Billion

Alibaba Group is nearing the completion of a significant divestment, with its game developer unit, Lingxi Games, poised for sale to private equity firm Trustar Capital. The transaction is anticipated to bring in over $2 billion for Alibaba. Sources confirm that a formal agreement has been established following extensive negotiations, as indicated by an internal memo to Lingxi staff.

The internal communication revealed that Alibaba will transfer its entire stake in Lingxi to Trustar. Lingxi's current CEO, Zhou Bingshu, assured employees that he and the management team would remain in place, signaling a commitment to operational continuity post-acquisition. Lingxi Games is widely recognized for its successful multiplayer strategy game, 'Three Kingdoms: Strategy Edition'.

This sale is part of Alibaba's broader strategy to reassess its non-core assets, redirecting capital and management focus towards key areas like artificial intelligence and cloud computing. Trustar Capital, formerly known as CITIC Capital, is an Asia-focused private equity firm expected to provide Lingxi with valuable industry resources and operational guidance for its future growth. The deal signifies a new chapter for Lingxi, which had previously encountered difficulties with fundraising efforts due to proposed regulatory changes in China's online gaming sector.