Alibaba Group is planning to sell its gaming unit Lingxi Games, according to people familiar with the matter. Alibaba has approached at least five potential buyers, including Chinese game developers 37 Interactive Entertainment, China Ruyi, Century Huatong and Giant Network, as well as two private equity firms, the sources said. The business is being marketed at between seven billion yuan ($1.03 billion) and nine billion yuan ($1.33 billion).
The proposed sale is aimed at optimizing Alibaba’s asset portfolio and raising cash, the sources added. Founded in 2018, Lingxi Games is best known for hit titles including Three Kingdoms: Strategy Edition. If completed, the deal would rank among the largest divestments of a gaming business by a major Chinese internet company in recent years. [DoNews, in Chinese]