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Alibaba reportedly seeks sale of gaming unit Lingxi Games, valuation starts at$1.03 billion
Alibaba is reportedly seeking to sell its gaming unit, Lingxi Games, with a valuation between $1.03 billion and $1.33 billion. The move aims to optimize its asset portfolio and raise cash, targeting at least five potential buyers, including notable game developers and private equity firms.
Key points
- Alibaba plans to sell Lingxi Games to optimize its asset portfolio and improve cash flow.
- The company has reached out to at least five potential buyers, including Chinese game developers and private equity firms.
- Lingxi Games, founded in 2018, is known for its successful title 'Three Kingdoms: Strategy Edition'.
- The valuation for the sale is set between 7 billion yuan ($1.03 billion) and 9 billion yuan ($1.33 billion).
- If successful, it would represent one of the largest divestments of a gaming business by a major Chinese internet company recently.
Why it matters
- This sale aligns with broader trends in the tech and gaming sector where companies are streamlining operations.
- The move reflects a shift among Chinese internet companies to divest non-core assets in a challenging market.
- By 2025, IT trends indicate a growing focus on optimizing digital portfolios and maximizing operational efficiency.
- Similar trends have been observed in global gaming, where companies are also selling units to focus on more profitable divisions.
The potential sale of Lingxi Games illustrates Alibaba's strategic shift in asset management within the evolving gaming landscape, reflecting broader industry trends toward portfolio optimization.