Alibaba Group is reportedly exploring the sale of its gaming unit, Lingxi Games, as the tech conglomerate continues to restructure its diverse business portfolio. According to reports, the potential deal is valued at upwards of $2 billion. This move follows Alibaba’s recent efforts to focus on its core e-commerce and cloud computing businesses, a strategy that has seen the company offload various assets over the past year.

Lingxi Games, which gained significant market attention for titles like 'Three Kingdoms Tactics,' has been a notable part of Alibaba's digital entertainment arm. While Alibaba has not issued an official statement confirming the sale, the reported divestment aligns with the company's ongoing shift toward leaner operations. Industry analysts suggest that Alibaba is looking to exit sectors that do not directly support its primary revenue streams, particularly as the Chinese tech sector faces increased regulatory scrutiny and a cooling domestic market.

There is currently no information regarding potential buyers or a definitive timeline for the transaction. The reported $2 billion valuation reflects the unit's established presence in the mobile gaming market, though the final sale price remains subject to negotiation. As Alibaba continues to reorganize into six distinct business groups, the sale of Lingxi Games would mark another significant step in the company's effort to unlock shareholder value and simplify its corporate structure.