Alibaba to Sell Gaming Division

Alibaba is moving to divest its gaming division, Lingxi Games, in a transaction valued at over $2 billion. The acquisition is reportedly being led by the investment firm Trustar Capital. This development marks a significant shift in corporate strategy for the Chinese technology giant, which is currently reevaluating its portfolio to prioritize core interests in cloud computing and artificial intelligence over the interactive entertainment sector.

The agreed-upon sale price represents a notable increase from initial market valuations, which had previously estimated the division’s worth between $1 billion and $1.33 billion. This transaction follows Alibaba’s 2017 acquisition of the entity, then known as Guangzhou Ejoy, for $1 billion. Since that time, the division has focused on mobile strategy titles, most notably the flagship game Three Kingdoms Tactics, which is set in Ancient China.

The decision to sell follows a period of internal strategic review regarding non-core assets. While the companies involved have not issued formal statements regarding the deal, the move aligns with broader trends of major technology conglomerates streamlining operations to focus on high-growth infrastructure and emerging technologies. The divestment effectively concludes Alibaba’s direct involvement in the gaming industry, transitioning the studio to private equity ownership.