Alibaba to Sell Lingxi Games for $1.5B

Alibaba to Sell Lingxi Games for $1.5B

Alibaba Group (HK:9988) is selling its gaming arm Lingxi Games to Asian private‑equity firm Trustar Capital in a transaction that could value Lingxi at more than US$1.5 billion, according to an internal memo reviewed by Bloomberg. Lingxi Games’ chief executive Zhou Bingshu said Alibaba is handing over the business to allow the studio to focus more closely on its strategic priorities. The sale is part of a broader restructuring being led by Alibaba CEO Eddie Wu, which involves divesting non‑core assets while the group pursues a target of US$100 billion in artificial‑intelligence‑related revenue over the next five years. Alibaba recently released its largest AI model, which it claims delivers performance comparable to that of Anthropic’s technology. Lingxi’s flagship title is “Three Kingdoms: Strategy Edition,” a multiplayer strategy game developed in partnership with Japan’s Koei Tecmo.