Alibaba to sell Lingxi Games to Trustar Capital for over $2 billion

A representative image.Alibaba is expected to fetch over $2 billion from the sale of its gaming developer unit Lingxi Games to private equity firm Trustar Capital, Reuters reported citing a person familiar with the matter.The deal comes as the Chinese tech giant redirects capital and management attention toward strategic priorities including AI and cloud.An internal memo seen by Reuters confirmed that Alibaba and Trustar reached a formal agreement after several rounds of talks, under which Alibaba will transfer its entire Lingxi stake to Trustar.The memo did not disclose the deal value, the expected closing date, or details of regulatory approvals.Guangzhou-based Lingxi Games is best known for 'Three Kingdoms: Strategy Edition', a multiplayer strategy title based on China's Three Kingdoms era.

The game was developed in collaboration with Japan's Koei Tecmo Holdings, whose franchises include 'Romance of the Three Kingdoms' and 'Nobunaga's Ambition'.The sale extends a period of change for Lingxi, which had previously explored external fundraising before a planned 2023 process stalled after China proposed tighter rules for the online gaming sector.Lingxi underwent a management reshuffle in 2024, with Zhou — who led the team behind 'Three Kingdoms: Strategy Edition' — becoming CEO after founder Zhan Zhonghui's departure.