Morningstar

Alibaba to Sell Videogame Business for at Least $1.5 Billion

Provided by Dow Jones Aug 17, 2026, 9:52:00 AM

By Tracy Qu

Alibaba Group is selling its videogame arm in a deal worth at least $1.5 billion, as the Chinese company shifts its focus to artificial intelligence.

The company has reached an agreement to sell Lingxi Games to Asian private-equity firm Trustar Capital, according to an internal memo viewed by The Wall Street Journal on Monday. The deal would value the gaming studio at more than $1.5 billion, a source familiar with the matter said.

The divestment is part of the Chinese e-commerce company's broader effort to shed noncore businesses and shore up its finances as it ramps up investment in AI.

The transaction is "part of Alibaba's overall road map to sharpen its strategic focus," said Zhou Bingshu, chief executive officer of Lingxi Games, without disclosing the size of the deal.

Write to Tracy Qu at tracy.qu@wsj.com

(END) Dow Jones Newswires

August 17, 2026 00:52 ET (04:52 GMT)

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