Kabam: $38.5 Million In Secondary Offering, $700 Million Valuation, $300 Million In Revenues This Year
Kabam is a company that is known for developing free-to-play core games for the Apple App Store, Google Play, Facebook, Yahoo!, Kabam.com, and other platforms. The valuation of the company has hit $700 million after a small group of investors launched a secondary offering for common stock that will allow current and former employees to sell their shares to investors.
“I strongly believe that all Kabam talent should share in the value that they are creating for our company’s shareholders, including themselves. In the last 12 months, Kabam has launched North America’s most successful game publishing and platform business, bringing over 20 high quality titles to market. In addition, our own studios have created the world’s number one mobile racing game, Fast and Furious 6: The Game. Our talented employees are the ones making these efforts so successful,” stated Kabam co-Founder and CEO Kevin Chou.
None of this new investment is going to Kabam. The secondary offering will be offered for employees that want to sell their shares. It is a voluntary program too. Kabam has been extremely profitable and they have $50 million in the bank. Their revenues are expected to grow over $300 million this year.
Kabam did not name the secondary offering companies. Several current investors and new investors are participating.
Most of Kabam’s revenues come from games on mobile devices. The company has 3 games in the top 15 grossing applications on iOS and Android including The Fast & Furious: The Game, The Hobbit, and Kingdoms of Camelot.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry