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      Alibaba Sells Lingxi Games for Over $2 Billion to Focus on AI

      Alibaba has sold its gaming subsidiary Lingxi Games in a deal valued at over $2 billion, marking a significant shift in the company's strategy as it prioritizes investments in artificial intelligence and cloud computing. The buyer, Trustar Capital, an Asia-based private equity firm, outbid several competitors to secure the acquisition, which underscores a strong market interest in the gaming sector despite recent regulatory challenges in China.

      Lingxi Games, which operates five self-developed game studios and platforms like 9Game and Jiaoyimao, is known for its popular mobile strategy game, "Three Kingdoms: Strategy Edition." The sale follows a previous valuation estimate of around $1.5 billion, indicating a reassessment of Lingxi's potential earnings as Trustar Capital pushed the final price significantly higher.

      This divestiture is part of a broader restructuring initiative led by Alibaba's CEO Eddie Wu, who has been focusing the company's resources on core areas such as AI and cloud services. Lingxi Games, which originated from Alibaba's acquisitions of UCWeb and Guangzhou Ejoy, has been seen as a secondary business compared to Alibaba's primary e-commerce operations. The sale reflects a strategic decision to streamline operations and concentrate on more lucrative sectors.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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