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Alibaba to sell Lingxi Games stake in deal worth over $2 billion
The transaction would transfer Alibaba’s entire Lingxi stake to Trustar Capital, with management continuity under CEO Zhou Bingshu, according to an internal memo reviewed by Reuters.
Alibaba Group is expected to generate 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 told Reuters.
According to an internal memo sent to Lingxi staff on Monday and reviewed by Reuters, Alibaba and Trustar have reached a formal agreement after several rounds of talks. Under the agreement, Alibaba will transfer all of its Lingxi stake to Trustar.
The memo reviewed by Reuters did not disclose the deal’s value in full, the timing of closing, or whether the deal is subject to regulatory approvals or other conditions.
Reuters reported that the memo said Zhou Bingshu, Lingxi’s CEO, and the management team would continue to lead the company after the ownership change. Bloomberg News, earlier reported the deal could be worth at least $1.5 billion, citing sources.