Alibaba to Sell Videogame Business for at Least $1.5 Billion — Update

By Tracy Qu Alibaba Group is selling its videogame business 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 transaction is "part of Alibaba's overall road map to sharpen its strategic focus," Lingxi Games Chief Executive Zhou Bingshu said without disclosing the size of the deal. Alibaba has spent recent years pushing its non-core businesses to become profitable or selling them. The effort is aimed at strengthening its finances as it increases investment in AI and e-commerce The company sold its stakes in hypermarket chain Sun Art and department-store operator Intime for a combined $2.6 billion in late 2024. Chairman Joe Tsai and Chief Executive Eddie Wu described the sales as part of an effort to streamline Alibaba's portfolio in a letter published in June last year. While gaming remains a lucrative sector attracting major technology investment, some companies are changing course. ByteDance sold its gaming studio Moonton earlier this year. Both ByteDance and Alibaba have increased investment in AI, and their ChatGPT-like services rank among the most popular AI apps in China. Write to Tracy Qu at tracy.qu@wsj.com (END) Dow Jones Newswires August 17, 2026 01:52 ET (05:52 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar. Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees. Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.