Alibaba reportedly sells Lingxi Games stake to Trustar Capital in deal worth more than $2 billion

Alibaba has reportedly agreed to sell its entire stake in Lingxi Games to Asia-focused private-equity firm Trustar Capital in a transaction valued at more than $2 billion. Lingxi is known particularly for Three Kingdoms: Strategy Edition and represents a substantial presence in China's strategy-game market. Existing CEO Zhou Bingshu and the management team are expected to remain in place, meaning the transaction changes ownership without necessarily forcing an immediate operational overhaul.

The reported sale fits Alibaba's wider effort to concentrate resources around areas such as artificial intelligence and cloud computing while reviewing assets outside those priorities. For Lingxi, specialist private-equity ownership could create a different approach to investment, international growth and acquisitions.

Mobile-game studios with established live-service titles can be particularly attractive acquisition targets because their recurring revenue is easier to model than the performance of individual premium releases. The transaction still depends on the usual completion and regulatory processes, and neither side has published a detailed long-term product roadmap tied to the ownership change. At more than $2 billion, however, the agreement would be one of 2026's more substantial games-industry transactions.