Alibaba's Strategic Shift: Lingxi Games Sold to Trustar Capital

Alibaba Group has agreed to sell its game developer unit, Lingxi Games, to Trustar Capital for over $2 billion. This move aligns with Alibaba's focus on AI and cloud. Lingxi's CEO Zhou Bingshu will continue to lead the company, ensuring operational continuity post-sale.

Alibaba Group is set to divest its game development arm, Lingxi Games, to private equity firm Trustar Capital for more than $2 billion, an inside source disclosed to Reuters. This sale marks a significant step in Alibaba's strategy to focus on artificial intelligence and cloud computing.

The transaction follows extensive negotiations, capped off by a formal agreement reviewed by Reuters. As part of the deal, Alibaba will relinquish its entire stake in Lingxi Games to Trustar, although the exact financial terms remain undisclosed.

Under the leadership of CEO Zhou Bingshu, Lingxi Games will maintain operational consistency after the transition. The sale comes after previous fundraising plans were halted due to tighter gaming regulations in China.