Trustar Capital is nearing a deal to buy Alibaba Group Holding Ltd’s video game unit, Lingxi Games, for more than US$1.5 billion, according to people familiar with the matter.

Talks are ongoing, and no final decision has been made.

Trustar Capital, the private equity affiliate of Hong Kong-based CITIC Capital Holdings, has emerged as the likeliest buyer after outbidding other suitors, including game companies.

The firm manages US$9.59 billion in committed capital.

The potential sale would align with Alibaba’s reorganization under CEO Eddie Wu.

The company has been divesting assets outside its core business, including its stake in Sun Art Retail Group, while making AI and cloud computing priorities.

Lingxi’s flagship game, Three Kingdoms: Strategy Edition, is a massively multiplayer online strategy game developed in partnership with Japan’s Koei Tecmo Holdings Co.

🔗 Source: Bloomberg

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