Alibaba Group has reportedly entered into a formal agreement to sell its gaming division, Lingxi Games, to the private equity firm Trustar Capital. While specific financial terms were not officially disclosed, sources familiar with the transaction suggest the deal could exceed $2 billion. Following the ownership change, Lingxi’s current CEO, Zhou Bingshu, confirmed in an internal memo that he and his existing management team will remain in place, ensuring that the company’s operations continue without significant disruption.

This divestment aligns with Alibaba’s broader corporate strategy to streamline its portfolio and offload non-core assets. As the tech giant shifts its primary focus toward cloud computing and artificial intelligence, it has recently moved away from physical retail chains like Sun Art and Intime. For Lingxi Games, which rose to prominence with the hit title Three Kingdoms: Strategy Edition, the acquisition by Trustar marks a new chapter after a period of regulatory uncertainty and internal leadership reshuffling. Both companies have yet to provide further details regarding closing dates or potential ongoing commercial partnerships.