Alibaba Drops Gaming Arm as AI Takes Center Stage
Alibaba Group Holding (BABA) is selling its gaming unit, Lingxi Games, to Asian private equity firm Trustar Capital in a transaction reportedly worth at least $1.5 billion.
The sale comes as CEO Eddie Wu makes artificial intelligence and cloud computing key strategic priorities for the company.
Why Alibaba Is Letting Go of Gaming
Lingxi CEO Zhou Bingshu told employees in a Monday memo that the handover frees Alibaba to concentrate on its strategic priorities.
"Alibaba is handing Lingxi to Trustar due to better focus on its strategic priorities," Zhou said.
Chief executive Eddie Wu has been pruning assets outside the company's core. Alibaba sold its controlling stake in hypermarket operator Sun Art Retail Group to DCP Capital for roughly $1.6 billion in January 2025.
Trustar Capital, an Asian buyout firm, emerged as the preferred bidder ahead of strategic buyers from the gaming industry, people familiar with the matter said. The reported price tops the roughly 9 billion yuan Alibaba was earlier expected to fetch.
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