Alibaba Reportedly Seeks Sale of Gaming Unit Lingxi Games at Over $1 Billion
Chinese tech giant Alibaba is reportedly trying to sell its video game studio, Lingxi Games. The asking price starts at about $1.03 billion. This Alibaba Lingxi Games sale would be one of the biggest gaming deals by a major Chinese internet firm in recent years. It also shows how Alibaba is trimming parts of its business to focus on its core work and raise cash.
Lingxi Games is the gaming arm of Alibaba. Alibaba is best known for online shopping and cloud computing, not games. So selling this unit fits a clear pattern. The company wants to keep what is central to its future and let go of the rest.
How much is Lingxi Games worth
Reports say the deal is valued between 7 billion yuan and 9 billion yuan. In US dollars, that is about $1.03 billion to $1.33 billion. Valuation is just the price tag put on a company, or what buyers think it is worth. The final number will depend on who bids and how strong the demand is.
If the sale goes through near these numbers, it would rank among the largest divestments of a gaming business by a major Chinese internet company in recent years. A divestment is when a company sells off a part of itself. For a unit that is not core to Alibaba, that is a notable price.
| Item | Detail |
|---|---|
| Unit for sale | Lingxi Games (Alibaba’s gaming studio) |
| Low-end valuation | 7 billion yuan (about $1.03 billion) |
| High-end valuation | 9 billion yuan (about $1.33 billion) |
| Founded | 2018 |
| Known game | Three Kingdoms: Strategy Edition |
| Reported reason | Optimize asset portfolio, raise cash |
| Report date | June 24, 2026 |
Who might buy Lingxi Games
Several companies are said to be interested. The named possible buyers are 37 Interactive Entertainment, China Ruyi, Century Huatong, and Giant Network. These are all established players in China’s media and gaming world. Two private equity firms are also reportedly looking, but their names have not been shared.
Private equity, or PE, means investment firms that buy companies using pooled money from big investors. They often improve a business and sell it later for a profit. The mix of gaming firms and PE buyers shows that Lingxi Games is seen as a real, working studio with value.
What Lingxi Games makes
Lingxi Games was founded in 2018. Its best-known title is Three Kingdoms: Strategy Edition. This is a strategy game based on a famous period in Chinese history. Strategy games ask players to plan, build, and outsmart rivals over time. A popular title like this is a key reason buyers are interested.
Why Alibaba is selling
The reported reason is simple. Alibaba wants to optimize its asset portfolio and raise cash. A portfolio is just the full set of businesses and investments a company owns. Optimizing it means keeping the strong, core parts and selling the rest. The cash from a sale can then be used elsewhere, such as in cloud computing or AI.
This is part of a wider clean-up at Alibaba in recent years. Big tech firms often sharpen their focus when growth slows or when one area, like AI, becomes the main prize. Selling a side business is a clean way to free up money and attention. The flow of money into and out of startups is a constant theme in tech, as our story on how Menlo Ventures raises startup funding across stages shows.
FAQ
What is Lingxi Games?
Lingxi Games is Alibaba’s video game studio, founded in 2018. Its best-known title is Three Kingdoms: Strategy Edition, a strategy game set in ancient China.
How much does Alibaba want for it?
Reports put the valuation between 7 billion yuan and 9 billion yuan. That is roughly $1.03 billion to $1.33 billion. The final price will depend on bidding.
Why is Alibaba selling a profitable-looking studio?
Gaming is not core to Alibaba’s main business of shopping and cloud computing. Selling the unit lets Alibaba tidy its portfolio and raise cash for areas it cares about more.
Why it matters (especially for India / founders)
This deal holds lessons for Indian founders and investors. First, even giant companies prune what is not core. Focus often beats spreading thin. Second, a non-core unit can still fetch over $1 billion if it has a strong product. That shows how much a single hit title or strong asset can be worth. Indian startups and gaming firms can study how Chinese players buy, sell, and value studios. Smart deal-making is a skill worth learning, much like the funding tactics in our story on the betting firm, Anthropic, and Menlo Ventures raising big.
The takeaway
Alibaba’s reported plan to sell Lingxi Games for over $1 billion is a clear sign of focus. The company is shedding a side business to raise cash and tidy its portfolio. With several big buyers reportedly circling, the studio is clearly valued for its games. If the deal closes, it will be one of China’s biggest gaming sales in years.
