Alibaba Sells Gaming Unit Lingxi Games to Trustar Capital for at Least $1.5 Billion

3-line summary

• Alibaba reached a formal agreement to sell its gaming unit Lingxi Games to Asian private-equity firm Trustar Capital for at least $1.5 billion, transferring its entire stake, according to an internal memo reviewed by Reuters and the Wall Street Journal, cited by Yahoo Finance.
• Lingxi CEO Zhou Bingshu, who sent the memo to staff, said the deal is 'part of Alibaba's overall road map to sharpen its strategic focus'; Zhou and Lingxi's management team will continue leading the company after the sale, which follows Alibaba's 2024 sales of stakes in Sun Art and Intime for a combined $2.6 billion.
• Guangzhou-based Lingxi is best known for 'Three Kingdoms: Strategy Edition,' developed with Japan's Koei Tecmo; the divestiture comes as Alibaba's Cloud Intelligence Group posted revenue of 41.63 billion yuan last quarter, up 38% year-over-year, with AI-related product revenue extending a streak of triple-digit growth.

This summary is our own processing of the source article; see the source link below for full context.