It is allegedly going to be acquired by the investment firm Trustar Capital.
Three Kingdoms Tactics
Rumors that the Chinese corporation Alibaba plans to sell its gaming brand Lingxi Games emerged a month ago. At the time, local media reported that Alibaba was in talks with several companies, but a final decision had not yet been reached. As Reuters has now discovered, the sale is indeed going to happen.
Notably, the initial valuation of Lingxi Games was significantly lower—between 7 and 9 billion yuan ($1-1.33 billion), but ultimately, the price was decided to be raised.
According to Reuters sources, Alibaba is currently reassessing non-core assets as part of a change in business strategy. It appears that the corporation is more interested in cloud technologies and artificial intelligence rather than video games, making the separation from Lingxi Games a logical step.
To recall, Alibaba itself bought Lingxi Games (then known as Guangzhou Ejoy) in 2017 for $1 billion. Two years later, the division released Three Kingdoms Tactics—a mobile strategy game set in Ancient China, which remains the flagship game of Lingxi Games.
Alibaba, Lingxi Games, and Trustar Capital have not commented on the Reuters information.