Trustar Capital, an Asian private equity firm, is reportedly close to finalizing a deal to acquire Alibaba‘s gaming division, Lingxi Games, after outmaneuvering several rival bidders including other game developers. The potential transaction could value the studio at more than $1.5 billion, though discussions remain ongoing and a final agreement has yet to be reached. Lingxi Games is best known for ‘Three Kingdoms: Strategy Edition,’ a multiplayer strategy title developed in partnership with Japanese gaming company Koei Tecmo, which has become the studio’s flagship and highest-grossing release. The main objective behind the sale is ecommerce and portfolio streamlining: it forms part of Alibaba’s wider effort to simplify its holdings under CEO Eddie Wu, as the company pivots resources toward its core commerce and AI/cloud businesses. Key players include Trustar Capital and Alibaba, with the deal following other recent divestitures such as Alibaba’s sale of its stake in Sun Art Retail Group to private equity firm DCP Capital for about $1.6 billion last year.
Trustar Capital Nears $1.5B Deal for Alibaba’s Gaming Unit Lingxi Games
