Alibaba Gains 1.5% as Reuters Reports $2 Billion Lingxi Games Sale
Updated
Updated · CNBC · Aug 17
Alibaba Gains 1.5% as Reuters Reports $2 Billion Lingxi Games Sale
3 articles · Updated · CNBC · Aug 17
Summary
Alibaba shares rose 1.5% in premarket trading after Reuters reported the company is set to sell game developer Lingxi Games to Trustar Capital.
More than $2 billion is the expected deal value, according to a person familiar with the matter cited by Reuters, giving investors a fresh catalyst for the stock.
Trustar Capital was also named in an earlier report that pegged the transaction at over $1.5 billion, suggesting the sale is advancing as Alibaba reshapes its portfolio.
Alibaba has been using divestments to narrow its focus on higher-priority businesses including AI and cloud, part of CEO Eddie Wu's broader overhaul.