Alibaba sells Lingxi Games in deal valued above $1.5 billion
Why it matters: The sale frees Alibaba to push harder into AI and cloud as it targets $100 billion in AI revenue within five years.
Alibaba Group Holding is selling gaming unit Lingxi Games to private equity firm Trustar Capital in a transaction valued at more than $1.5 billion, according to an internal memo reviewed by Bloomberg News. The disposal fits Chief Executive Eddie Wu’s broader overhaul of the Chinese company, which has been shedding non-core assets while putting artificial intelligence and cloud computing at the center of its strategy. Lingxi CEO Zhou Bingshu said in the memo that Alibaba was transferring the studio to sharpen focus on strategic priorities. Lingxi’s best-known title is Three Kingdoms: Strategy Edition, developed with Japan’s Koei Tecmo Holdings.