Alibaba officially sells Lingxi Entertainment, with the buyer being Xincheng Capital.

Today, Zhou Bingshu, CEO of Lingxi Interactive Entertainment, released an internal letter to all employees announcing that Alibaba Group and Xincheng Capital have officially reached a transaction agreement. According to the agreement, Alibaba will transfer its shares in Lingxi Interactive Entertainment, and Xincheng Capital will become the new shareholder of the company. Reports indicate that Xincheng Capital, a subsidiary of CITIC Capital, is acquiring Alibaba's Lingxi Interactive Entertainment for over $1.5 billion. Previous "candidates" for the acquisition included several publicly listed gaming companies such as 37 Interactive Entertainment, Giant Network, and China Ru Yi, all of which participated in the bidding but ultimately withdrew.