- BABA
+1.35%
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
Most Read from The Wall Street Journal
-
Why Big Tech’s AI Spending Is $3 Trillion Higher Than It Seems
-
<a href="https://www.wsj.com/lifestyle/cars/from-piece-of-junk-to-prize-showpiece-the-rise-of-the-everyday-classic-car-3d8b7ad7?siteid=yhoof4″ rel=”nofollow noopener” target=”_blank”>From ‘Piece of Junk’ to Prize Showpiece: The Rise of the Everyday Classic Car
-
A Breakdown of the Financial Advice That’s Flying All Over TikTok
-
Prosecutors Focus on Four Businesses Tied to Dodgers Owner Mark Walter
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
