Asian private equity firm Trustar Capital is nearing a deal to acquire Alibaba Group's video game business, Lingxi Games, in a transaction that could value the unit at over $1.5 billion. According to sources, Trustar has emerged as the leading bidder, surpassing offers from other strategic buyers in the gaming industry, though discussions are ongoing and a final agreement has not been reached.
The potential sale is part of a broader reorganization at Alibaba under CEO Eddie Wu, as the company divests non-core assets to concentrate on its main e-commerce operations and strategic priorities like artificial intelligence and cloud computing. The reported valuation exceeds earlier expectations from June 2026, when Alibaba was said to be seeking between $1 billion and $1.3 billion for the gaming division.