Prime Highlights :
- Alibaba stands to earn more than $2 billion from selling its Lingxi Games unit to Trustar Capital.
- Lingxi’s CEO said he and the existing management team will continue leading the company after the sale.
Key Facts :
- Alibaba is one of China’s largest technology firms, operating e-commerce, cloud computing and other digital businesses.
- Lingxi Games is best known for developing “Three Kingdoms: Strategy Edition” alongside Japan’s Koei Tecmo Holdings.
Background :
Alibaba Group is expected to receive more than $2 billion from the sale of its game developer unit Lingxi Games to private equity firm Trustar Capital, a person familiar with the matter said. Alibaba and Trustar reached a formal agreement after several rounds of talks, according to an internal memo sent to Lingxi staff this week by the company’s chief executive, Zhou Bingshu.
Under the agreement, Alibaba will transfer its entire stake in Lingxi to Trustar. The memo did not disclose the deal’s value, closing timeline, or details of regulatory approvals. Reports citing sources have put the deal’s worth at a minimum of $1.5 billion. Zhou noted in the memo that he and Lingxi’s management team would continue leading the company, signalling continuity despite the ownership change.
Alibaba, one of China’s largest technology firms, runs e-commerce platforms, cloud computing services and other digital businesses. The company has been reviewing non-core assets as it shifts focus and capital toward strategic priorities such as AI and cloud computing. Sources said Alibaba had been seeking a buyer for Lingxi for some time.
Trustar, formerly known as CITIC Capital, is an Asia-focused private equity firm. Zhou said the firm has the industry resources and operational expertise to support Lingxi’s next stage of growth.
Guangzhou-based Lingxi Games is known for “Three Kingdoms: Strategy Edition,” developed with Japan’s Koei Tecmo Holdings. The deal extends a period of change for Lingxi, which earlier explored external fundraising that stalled after China proposed tighter gaming sector rules. The company also underwent a leadership reshuffle last year, with Zhou taking over as CEO after founder Zhan Zhonghui’s departure.
