Lingxi Games, the gaming unit of Chinese tech giant Alibaba (NYSE:BABA), is shaking up its management team. According to Reuters, Lingxi’s leadership is stepping down, making way for the younger generation to take over its reins.
In recent times, Alibaba has increasingly focused on elevating people born after 1985 to its management. The strategy is aimed at helping the company maintain a startup mindset and escape being stuck in old ways.
The effort also means that the eCommerce giant is opting for a holding company structure and carving up its operations into six units. At Lingxi, industry veteran Zhan Zhongui is making way for Zhou Bingshu to take over. Zhou, known for producing the hit title Three Kingdom Tactics, is in his mid-30s, as per Reuters. Lingxi, previously known as Ejoy, was acquired by BABA at a billion-dollar valuation in 2017.
Separately, Alibaba is betting big on the AI wave. The company has so far made substantial investments in two AI-focused names, MiniMax and Moonshot AI. MiniMax was last valued at about $2.5 billion.
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Overall, the Street has a Strong Buy consensus rating on Alibaba, and the average BABA price target of $101.55 points to a substantial 40% potential upside in the stock. That’s after a nearly 18% slide in the company’s share price over the past year.
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