Alibaba to sell Lingxi Games in more than $2 billion deal, source says

Alibaba Group is set to sell its game developer unit Lingxi Games to private equity firm Trustar Capital for more than $2 billion, according to a source. The formal agreement, reached after multiple rounds of negotiations, was confirmed in an internal memo sent to Lingxi staff on Monday by Lingxi CEO Zhou Bingshu. The deal includes the transfer of Alibaba's entire stake in Lingxi Games to Trustar.

Although the memo did not provide details on the transaction's closing date or regulatory approvals, it confirmed that Zhou and the Lingxi management team would continue to lead the company, ensuring uninterrupted operations following the ownership change. Initially reported by Bloomberg News, the deal is valued at a minimum of $1.5 billion.

Alibaba, a Chinese technology giant, operates various digital businesses, including e-commerce platforms and cloud-computing services. The company has been reviewing non-core assets to focus its resources on strategic priorities such as AI and cloud computing. Lingxi Games, based in Guangzhou, gained prominence with the multiplayer strategy game "Three Kingdoms: Strategy Edition," developed in partnership with Japanese game publisher Koei Tecmo Holdings.