Report: Alibaba Prepares to Sell Gaming Division Lingxi Games for Over $2 Billion

Chinese corporation Alibaba is reportedly planning to sell its gaming division, Lingxi Games, to the investment firm Trustar Capital for a price exceeding $2 billion. Reports regarding the potential sale first emerged a month ago when local media outlets indicated that Alibaba was holding discussions with multiple companies. Reuters sources have now confirmed that the sale is moving forward.

The valuation for Lingxi Games has increased significantly since initial estimates, which placed the division between 7 and 9 billion yuan, or roughly $1 billion to $1.33 billion. Alibaba originally acquired the division, formerly known as Guangzhou Ejoy, in 2017 for $1 billion. Two years later, the studio launched its flagship title, a mobile strategy game set in Ancient China called Three Kingdoms Tactics.

Industry observers note that the divestment aligns with a broader corporate strategy shift. Alibaba is currently reassessing its non-core assets to focus more heavily on cloud technologies and artificial intelligence rather than video games, making the separation from Lingxi Games a logical step for the company. Representatives for Alibaba, Lingxi Games, and Trustar Capital have not provided official comments regarding the Reuters report.