Key facts
- Alibaba agreed to sell its gaming division, Lingxi Games.
- Trustar Capital is the buyer of Lingxi Games.
- The sale price is over $2 billion.
- The deal was confirmed via an internal memo from CEO Zhou Bingshu.
- Alibaba is shifting its focus to AI and e-commerce.
- Lingxi Games was established in 2017.
- Lingxi Games developed mobile games like "Project: Dawn" and "Soul Land: Dawn of Heroes."
Alibaba has announced its agreement to sell its gaming division, Lingxi Games, to Trustar Capital for a sum exceeding $2 billion. The confirmation of this deal came through an internal memo distributed by Alibaba's CEO, Zhou Bingshu. This divestment signifies a strategic redirection for Alibaba, as the company intends to concentrate its resources and efforts on artificial intelligence and its primary e-commerce operations. Lingxi Games, which was established in 2017, has developed several mobile games, including "Project: Dawn" and "Soul Land: Dawn of Heroes." The sale represents a significant move for Alibaba away from the gaming industry, which it entered with the aim of diversifying its business portfolio. Trustar Capital, a private equity firm, is expected to take over the operations of Lingxi Games, potentially integrating it into its existing portfolio of technology and entertainment companies. The exact terms of the deal beyond the reported $2 billion figure have not been disclosed, but the transaction is anticipated to be completed in the coming months, pending regulatory approvals.