Alibaba Sells Gaming Arm Lingxi Games in $1.5 Billion Deal
Alibaba Group Holding Ltd. is selling its gaming subsidiary Lingxi Games to Asian private equity firm Trustar Capital in a deal that could value the studio at more than $1.5 billion, as the Chinese e-commerce giant sharpens its focus on artificial intelligence (AI) and cloud computing.
Trustar Capital has reached an agreement to acquire Lingxi Games, according to reports. Lingxi Games Chief Executive Officer Zhou Bingshu said Alibaba was transferring the business to Trustar to allow the company to focus more closely on its strategic priorities. The value of the transaction was not disclosed.
As per reports, the deal could value Lingxi Games at more than $1.5 billion.
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The transaction forms part of Alibaba’s broader corporate restructuring under Chief Executive Officer Eddie Wu. The company has been divesting businesses considered non-core while directing greater resources toward AI and cloud computing. Alibaba has set an ambitious target of generating $100 billion in AI-related revenue over the next five years.
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The company has also intensified its efforts to compete with leading global AI firms. Earlier this month, Alibaba unveiled its largest AI model to date and said its performance was comparable with that of Anthropic, highlighting China’s growing capabilities in the rapidly developing AI sector.
Lingxi Games is known for its flagship title, Three Kingdoms: Strategy Edition, a multiplayer online strategy game developed in partnership with Japan’s Koei Tecmo Holdings Co. The title has become one of the studio’s highest-grossing games.
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The sale marks another step in Alibaba’s strategy to streamline its portfolio and concentrate investment on businesses viewed as central to its long-term growth, particularly AI and cloud technology.