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Alibaba to sell its stake in Lingxi Games to Trustar Capital
The reported deal value is more than $2.0 billion, while Alibaba says it has not disclosed the sale price or timeline.
Alibaba Group Holding Limited has agreed to sell its entire interest in Lingxi Games to private equity firm Trustar Capital, according to material citing Reuters. A source told Reuters the deal is worth more than $2.0 billion, but Alibaba's internal announcement did not disclose the price, closing timetable, or which regulatory approvals are needed.
The move fits Alibaba's broader push to simplify its portfolio and reduce exposure to businesses outside its core focus areas, including e-commerce, cloud computing, and AI. The sale would also free cash if the transaction closes on the reported terms, the material notes, though it does not say whether the price is favorable.
The article points to Alibaba's heavy investment in AI and cloud infrastructure, saying the company committed at least RMB380 billion, or about $53 billion, over three years. It also cites signs of demand tied to that spending, including Cloud Intelligence Group revenue growth and increases in external cloud revenue, with AI-related products contributing a stated share and showing triple digit growth for multiple consecutive quarters.
Alibaba ended March with RMB520.8 billion of cash and other liquid investments, and the material says the reported proceeds would increase available capital as management continues spending. It adds that Alibaba has not published Lingxi revenue, profit, cash flow, or the official sale price, leaving investors without figures to assess whether the consideration is appropriate.