❯ Alibaba to Sell Lingxi Games to Trustar Capital at Over $1.5 Billion Valuation

DEALBloomberg, citing people familiar with the matter, reports that Trustar Capital, the private equity arm of CITIC Capital, has emerged as the preferred buyer for Alibaba’s gaming business, Lingxi Games. The deal could value the unit at over $1.5 billion; negotiations are ongoing and no agreement has been finalized.

ASSETSLingxi’s mainstay is Three Kingdoms Tactics, its top-grossing flagship title. The asset has been publicly on the block since June, with an asking price starting around $1.03 billion. Trustar outbid multiple suitors, including strategic buyers from the gaming industry, lifting the valuation nearly 50% in two months.

DIVESTMENTThis is the latest in Alibaba’s continued pruning of non-core assets under Eddie Wu, with cash and headcount recovered now being concentrated into AI and cloud capital expenditure — the same week Alibaba released the full Qwen3.8 weight suite. One sale, one release: it’s the same arithmetic.

▪ SIGNALGaming assets swapped for AI ammunition — Alibaba’s portfolio contraction says more about where its core business lies than any slogan.