Alibaba (BABA) Stock: Company Sells Lingxi Games to Trustar Capital for Over $2 Billion

TLDR

• Alibaba is selling its gaming unit Lingxi Games to private equity firm Trustar Capital in a deal worth over $2 billion
• An internal memo confirmed the deal, with Lingxi CEO Zhou Bingshu and the management team staying in place
• The sale is part of Alibaba’s broader strategy to shed non-core assets and redirect capital toward AI and cloud
• Lingxi is best known for mobile strategy game “Three Kingdoms: Strategy Edition,” developed with Japan’s Koei Tecmo
• Alibaba has now sold over $4.6 billion in non-core assets since late 2024, including hypermarket chain Sun Art and department store Intime

Alibaba Group is set to sell its gaming unit Lingxi Games to Asian private equity firm Trustar Capital for more than $2 billion, according to a person familiar with the matter. Bloomberg reported the deal at a lower floor of $1.5 billion, citing separate sources.

Alibaba (BABA) stock rose 1.92% on the news.

Alibaba Group Holding Limited, BABA

An internal memo sent to Lingxi staff Monday by CEO Zhou Bingshu confirmed the formal agreement had been reached after several rounds of talks. Zhou said he and the management team would remain in place after the ownership change.

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