Alibaba's Gaming Subsidiary Lingxi Interactive Reportedly to Be Sold to Trustar for Over $1.5 Billion
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Asian private equity firm Trustar Capital is close to acquiring Alibaba's gaming subsidiary Lingxi Interactive (灵犀互娱) for over $1.5 billion, marking Alibaba's latest move to shed non-core assets and refocus on AI and cloud.
What do we know about this deal?
Trustar beat out several gaming companies in the bidding and emerged as the most likely buyer, at a valuation above $1.5 billion.
Chinese media had earlier reported a price tag of roughly 9 billion yuan (~$1.3 billion); the latest figure is higher.
Negotiations are ongoing with no final decision yet; Alibaba did not respond to comment requests, and Trustar declined to comment.
What exactly is Lingxi Interactive?
Lingxi's flagship title is *Three Kingdoms: Strategic Edition*, a massively multiplayer online strategy game co-developed with Japan's Koei Tecmo.
This means → Lingxi is not a hollow shell; it has a mature product with steady revenue, which underpins the $1.5 billion valuation.
Why is Alibaba selling its gaming business?
The sale is part of a broader restructuring led by CEO Eddie Wu: Alibaba is systematically divesting non-core assets and designating AI and cloud computing as its top priorities.
Last year Alibaba sold its stake in Sun Art Retail to PE firm DCP Capital — selling the gaming unit follows the same playbook.
In plain terms = Alibaba's strategy is straightforward — if a business is not on the core track, sell it and funnel the resources into AI.
Who is Trustar Capital?
Trustar is an Asia-focused private equity firm whose portfolio includes McDonald's China operations.
This reflects Trustar's strength in taking over large-scale consumer-facing operating assets; a gaming business fits the same category.
Content is for reference only, not financial advice.