Via lobehub.com
The Chinese tech giant continues off non-core assets to fund its artificial intelligence and cloud computing ambitions.
Alibaba is parting ways with its gaming subsidiary Lingxi Games in a deal expected to bring in more than $2 billion, according to Reuters. The sale marks another chapter in Alibaba’s strategy of trimming the fat to fuel its AI and cloud computing push.
The buyer appears to be Trustar Capital, an Asia-based private equity firm that reportedly outbid multiple competitors to land the deal. Bloomberg had earlier pegged the valuation at more than $1.5 billion, but the final figure climbed past the $2 billion mark.
From battlefield to boardroom #
Lingxi Games operates five self-developed game studios and runs platforms including 9Game and Jiaoyimao. Its crown jewel is “Three Kingdoms: Strategy Edition,” a mobile strategy title that has built a substantial player base in China and beyond.
The deal’s trajectory tells an interesting story about market appetite. Back in June 2026, when Alibaba first explored selling the unit, the valuation range sat at roughly 7 to 9 billion yuan, or approximately $1.03 billion to $1.33 billion. That Trustar ultimately pushed the price well above $2 billion suggests either fierce competitive bidding or a reassessment of Lingxi’s earnings potential.
Alibaba’s great unbundling #
This is the latest move in a deliberate corporate restructuring led by CEO Eddie Wu, who has been systematically redirecting the company’s capital and attention toward artificial intelligence and cloud computing.
Lingxi Games originated from Alibaba’s 2014 acquisition of UCWeb and the subsequent 2017 purchase of Guangzhou Ejoy, which cost around $1 billion. After being rebranded around 2020, Lingxi Games has primarily focused on developing mobile strategy and simulation games, but has been viewed as a secondary business overshadowed by Alibaba’s core e-commerce operations.
What this means for the gaming landscape #
China’s gaming industry has been through a rough few years, with regulatory crackdowns on minors’ gaming time, periodic freezes on new game approvals, and a general tightening of content oversight. Against that backdrop, a $2 billion-plus valuation for a mobile-focused studio is a notable data point.
For Alibaba’s competitors in the gaming space, Tencent and NetEase have long dominated Chinese gaming. The broader signal for the Chinese tech sector is that Alibaba has picked AI and cloud as its focus, and gaming, however profitable, didn’t make the cut. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our