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(Sharecast News) - Alilbaba has agreed a deal to sell its video-gaming business to private-equity outfit Trustar Capital for at least $1.5bn, as the ecommerce giant offloads non-core businesses and increases its spending on AI.
According to an internal memo seen by The Wall Street Journal, the Chinese firm has reached an agreement to dispose of Lingxi Games, best known for multiplayer game Three Kingdoms: Strategy Edition.
While the WSJ cited a source giving a $1.5bn price tag for the unit, a separate report by Reuters said that the deal price could fetch more than $1bn.
The deal is "part of Alibaba's overall road map to sharpen its strategic focus", according to Lingxi Games boss Zhou Bingshu in the memo.
Hong Kong-listed shares of Alibaba finished 1.9% higher at HKD122.20 on Monday.
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