Key Stats for Alibaba Stock
- Price change for Alibaba stock in the last 6 months: -17%
- $BABA Stock Price as of Aug. 18: $128
- 52-Week High: $193
- $BABA Stock Price Target: $190
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What Happened?
Alibaba (BABA) stock is getting a boost today after reports that the company is set to sell its game developer unit, Lingxi Games, to private equity firm Trustar Capital.
According to Reuters, Alibaba is expected to reap more than $2 billion from the deal, while Bloomberg reported the transaction could be worth at least $1.5 billion, citing its own sources.
Trustar confirmed late Monday that it had reached a transaction agreement to acquire Alibaba’s entire stake in Lingxi. The deal came together after several rounds of talks, according to an internal memo CEO Zhou Bingshu sent to Lingxi staff.
That memo didn’t disclose the exact deal value, a closing timeline, or details on regulatory approval. Neither did Trustar’s public statement.
Under the terms described, Alibaba will hand over its full stake in Lingxi to Trustar. Zhou said he and the rest of Lingxi’s management team will stay on to lead the company, which suggests day-to-day operations shouldn’t see major disruption. Trustar also confirmed it plans to keep the existing management team in place.
This move fits a broader pattern for Alibaba stock investors to watch. The company has been actively reviewing and shedding non-core assets so it can focus capital and management attention on AI and cloud, its two stated strategic priorities.
The Lingxi sale follows Alibaba’s earlier divestments of hypermarket operator Sun Art and department-store chain Intime.
That AI and cloud focus is already showing up in the numbers. In Alibaba’s most recent quarterly results, group revenue grew 11% year-over-year, while Cloud Intelligence Group’s external revenue growth accelerated to 40%. AI-related product revenue posted triple-digit growth for the 11th consecutive quarter, and China e-commerce customer management revenue grew 8% year-over-year on a like-for-like basis.
Management also disclosed that AI-related product revenue has surpassed an annualized RMB 35.8 billion run rate, and expects it to cross 50% of Cloud Intelligence Group’s external revenue within about a year.
Lingxi itself is best known for “Three Kingdoms: Strategy Edition,” a multiplayer strategy game developed with Japan’s Koei Tecmo.
The studio explored outside fundraising in 2023, but the process stalled after China proposed tighter rules for online gaming, a sector that has since rebounded.
Lingxi also went through a leadership change in 2024, with Zhou taking over as CEO after founder Zhan Zhonghui departed.
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What the Market Is Telling Us About Alibaba Stock
The market’s positive reaction suggests investors like seeing Alibaba trim non-core businesses and sharpen its focus.
A $1.5 billion to $2 billion sale isn’t a massive number relative to Alibaba’s overall size, but it signals continued discipline in shifting resources toward higher-growth priorities like AI and cloud infrastructure.
Combined with strong cloud growth and accelerating AI revenue already showing up in recent earnings, the Lingxi sale reinforces the narrative that Alibaba stock is becoming a cleaner, more focused bet on China’s AI and cloud buildout.
For investors tracking Alibaba stock, today’s move reflects confidence that management is executing on the strategy it laid out.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
