Alibaba reportedly agrees to sell Lingxi Games to Trustar Capital in deal worth more than $2 billion

Alibaba is reportedly selling its entire stake in Lingxi Games to Asia-focused private-equity firm Trustar Capital in a transaction expected to generate more than $2 billion. Lingxi is best known for Three Kingdoms: Strategy Edition, one of the notable strategy games in China's mobile market. According to reporting cited by PocketGamer.biz, Lingxi CEO Zhou Bingshu and the existing management team will remain in place after the ownership change.

The deal fits Alibaba's broader effort to review non-core assets while concentrating investment on areas including artificial intelligence and cloud computing. Games remain a substantial business in China, but operating studios requires different capital and management priorities from Alibaba's largest technology divisions. Trustar's acquisition would give Lingxi a new owner specifically accustomed to portfolio investment and operational development.

The reported agreement does not yet include a publicly disclosed closing timetable or full regulatory conditions. For the wider mobile industry, the transaction is another reminder that valuable studios can change hands even when their games remain commercially successful. At more than $2 billion, the Lingxi sale would rank among the year's more significant games-sector deals and provides a major new ownership structure for an established Chinese strategy developer.