Alibaba Sells Lingxi Interactive for Over $2 Billion to Trustar Capital
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Alibaba has agreed to sell its gaming subsidiary Lingxi Interactive Entertainment to Asia-focused PE firm Trustar Capital for over $2 billion, the latest move in CEO Eddie Wu's push to shed non-core assets and concentrate on AI and cloud.
How big is this deal?
Reuters, citing people familiar with the matter, puts the price at over $2 billion; Bloomberg earlier reported at least $1.5 billion — the two figures differ.
Alibaba, Lingxi, and Trustar have not publicly confirmed the exact amount; closing timeline and regulatory conditions remain undisclosed.
This means → the framework is set, but the final landed price and timetable still carry uncertainty.
Why is Alibaba selling its gaming arm?
The sale is part of a corporate overhaul led by CEO Eddie Wu (吴泳铭) — Alibaba is making AI and cloud computing its top strategic priorities while steadily divesting non-core assets.
Reuters, citing two sources, says Alibaba had been looking for a buyer for Lingxi for some time.
In plain terms = gaming makes money but sits outside the main lane; selling it frees resources for the AI bet.
What is Lingxi Interactive?
Headquartered in Guangzhou, Lingxi is best known for the mobile strategy title *Three Kingdoms: Strategic Edition*, co-developed with Japan's Koei Tecmo.
The company tried to raise external funding in late 2023, but the process stalled after Chinese regulators signaled tighter rules for gaming; a 2024 leadership reshuffle saw Zhou Bingxu (周秉旭) replace founder Zhan Zhonghui (詹钟晖) as CEO.
This reflects a unit that had already gone through two rounds of upheaval — a blocked fundraise and a leadership change — before the sale.
Who is the buyer, Trustar Capital?
Trustar Capital is formerly known as CITIC Capital — an Asia-focused private-equity firm.
Lingxi CEO Zhou Bingxu said in an internal memo that Trustar has the industry resources and operational capability to support the company's next phase.
Zhou and the existing management team will stay on; operations continue without disruption.
What questions remain after the deal?
Whether Alibaba will retain any commercial ties with Lingxi — including publishing partnerships, cloud services, or technology collaboration — is still unclear.
Whether the proceeds can meaningfully fund Alibaba's AI spending, and how Lingxi's product and business strategy will shift under Trustar, are the key points for assessing the deal's long-term value.
This means → signing the agreement is only step one; the asset separation and strategic repositioning that follow will determine whether this trade pays off.
Content is for reference only, not financial advice.