Alibaba Cashes Out with $2 Billion Lingxi Games Sale

Alibaba Group is selling its game developer unit, Lingxi Games, to Trustar Capital for a sum exceeding $2 billion. The deal, part of Alibaba's strategy to shed non-core assets, allows Lingxi's management to maintain operational continuity. The sale aligns with Alibaba's focus on AI and cloud priorities.

Alibaba Group is set to make over $2 billion by selling its game developer unit, Lingxi Games, to Trustar Capital, according to sources familiar with the situation.

Trustar Capital announced on Monday that it had reached an agreement with Alibaba to acquire the company's full stake in Lingxi after several negotiation rounds. An internal memo from Lingxi's CEO, Zhou Bingshu, confirmed the transition, as reported by Reuters.

Despite the lack of comments from both companies and undisclosed deal specifics, the sale signifies Alibaba's ongoing divestment of non-core assets as it seeks to focus on AI and cloud technologies.