Alibaba Group Holding Ltd. agreed to sell its gaming division, Lingxi Games, to Trustar Capital. The deal is valued at an estimated $1.5 billion. Some reports suggest the final price could exceed $2 billion. Lingxi Games CEO Zhou Bingshu confirmed the sale in an internal memo.
CEO Eddie Wu is leading a corporate reorganization to shed non-core assets. Alibaba will redirect capital toward artificial intelligence and cloud computing. The divestment follows several recent asset sales aimed at boosting AI investment.