Alibaba Sells Lingxi Games to CITIC Capital for Over $1.5 Billion, Management Stable
Alibaba Group has agreed to sell its gaming unit Lingxi Games to Asian private equity firm CITIC Capital for at least $1.5 billion (about HK$11.7 billion), according to an internal memo. Lingxi CEO Zhou Bingshu confirmed the deal in an internal letter on August 17, stating that Alibaba, as part of its strategic focus, is handing over Lingxi to CITIC Capital. The transaction was completed amicably, with CITIC Capital becoming the new shareholder. Lingxi's management team remains stable, and CITIC Capital supports the existing team's continued operations.
Alibaba Group has reached a transaction agreement with Asian private equity firm CITIC Capital to sell all shares of its gaming business Lingxi Games. According to an internal memo, the deal is worth at least $1.5 billion (approximately HK$11.7 billion). Lingxi Games CEO Zhou Bingshu confirmed the arrangement in an internal letter released on August 17, stating that Alibaba, based on its overall strategic focus, is formally handing over Lingxi Games to CITIC Capital. The transaction was concluded in a friendly and stable atmosphere, with CITIC Capital becoming the new shareholder of Lingxi Games.
Lingxi Games, formerly known as Jianyue Technology, was acquired by Alibaba in 2017 for RMB 1 billion and renamed. Its flagship product, "Three Kingdoms: Strategy Edition," is a war strategy game supporting multiplayer same-screen competition, co-developed with Japan's Koei Tecmo Holdings, and has surpassed 100 million global users. The company also owns games covering diverse genres, including "Three Kingdoms: Fantasy Land," "Ru Yuan," and "Wind Continent." Lingxi Games' management team remains stable, and CITIC Capital has expressed support for the existing team's continued stable operations under its leadership.
In June 2026, there were reports that Alibaba planned to sell Lingxi Games entirely, with the transaction price rumored at between RMB 7 billion and RMB 9 billion. Potential acquirers included several listed gaming companies such as 37 Interactive Entertainment, China Ruyi, Century Huatong, and Giant Network, as well as two private equity firms. Ultimately, CITIC Capital completed the acquisition at a price exceeding $1.5 billion (over RMB 10.1 billion). This sale is one of Alibaba's strategic moves to further transform toward the artificial intelligence sector.