Alibaba to sell gaming arm for US$1.5bil in boost to AI pivot
Asian private equity firm Trustar Capital agrees to acquire Lingxi Games, the studio behind the ‘Three Kingdoms: Strategy Edition’ game.
Alibaba Group Holding has sold its gaming subsidiary, Lingxi Games, for around US$1.5 billion. The deal is expected to further the Chinese e-commerce giant's strategic shift towards artificial intelligence (AI). Asian private equity firm Trustar Capital has agreed to acquire Lingxi Games, according to an internal memo reviewed by Bloomberg News.
Lingxi Games CEO Zhou Bingshu confirmed the transaction, stating that the sale allows for a better focus on Alibaba's strategic priorities. The value of Lingxi Games may exceed the reported US$1.5 billion, Bloomberg News reported last week. Alibaba and Trustar Capital have not yet commented on the sale.
Alibaba is currently undergoing a corporate restructuring under CEO Eddie Wu. The company is divesting non-core assets while prioritizing artificial intelligence and cloud computing. Alibaba recently launched its largest AI model, matching the performance of global leader Anthropic PBC. This Chinese breakthrough aims to challenge US rivals. Lingxi Games' flagship game, Three Kingdoms: Strategy Edition, is a massive multiplayer online strategy title co-developed with Japan's Koei Tecmo Holdings.
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