Kabam valuation hits $700M after employee stock sale
Social gaming firm Kabam said it is now worth $700 million based on a recent private transaction enabling staffers to sell $38.5 million of common stock.
Kabam said the sale was organized to benefit both its 700 employees and investors like Google (NASDAQ:GOOG) Ventures, Warner Bros., MGM and Intel, with none of the proceeds going into the company's own coffers. Kabam added it has $50 million in the bank and forecasts 2013 revenues exceeding $300 million, up 65 percent over 2012. The Wall Street Journal reports that a Kabam spokesman declined to discuss any plans for an IPO, although CEO Kevin Chau has previously said he expects the firm to go public by the end of 2014.
Kabam's catalog of free-to-play strategy and role-playing games target mobile operating systems including Apple's (NASDAQ:AAPL) iOS and Google's Android, as well as Facebook (NASDAQ:FB) and other Web platforms. Seven Kabam titles gross more than $1 million per month, four gross more than $3 million and two gross more than $6 million, highlighted by Kingdoms of Camelot, which has raked in more than $200 million in less than four years.
Kabam's Fast and Furious 6: The Game trailed only King.com's juggernaut Candy Crush Saga on total iOS game downloads in May 2013, according to mobile analytics firm App Annie. The company's success on mobile stands in stark contrast to rival Zynga (NASDAQ:ZNGA), which has struggled to gain a foothold on smartphones and tablets: Earlier this month, Zynga CEO Mark Pincus stepped down, with Don Mattrick, previously head of Microsoft's (NASDAQ:MSFT) entertainment division, stepping into the top spot.
- read this Wall Street Journal article
Report: Tablet owners spend 3x more on in-game purchases than smartphone users
Distimo: Top-ranking free iOS apps generate at least 72,000 downloads per day
Distimo: In-app purchases pay off for iOS developers
Forecast: Mobile app revenues to reach $27 billion in 2013, dominated by iOS