Kabam valued at $700 million after secondary financing


After a huge 2012, Kabam is primed to make a big splash in coming months. According reports, the social gaming giant is now valued at $700 million after a private sale of $38.5 million in common stock. The company also reported that it reached $180 in revenues in 2012, up 70 percent year to year.

This secondary offering is said to be done for the benefit of Kabam employees. Typically, private companies use an IPO for employees and investors to sell their shares. This secondary offering keeps the company operating privately but provides liquidity to people interested in selling their shares. Company CEO Kevin Chou added, “None of the new investment is going to Kabam… It’s all going to employees who wish to sell their shares, and it’s of course a voluntary program.”

This high valuation comes in spite of the company laying off a small number of employees late last month. The company did say that it took steps to repurpose the employees affected, but had to let go of an unfortunate few. It is not looking to downsize, but instead refocus its efforts by making mobile a priority. It looks to boost its employee count from 700 to 900 by the end of the year.

Kabam is being especially strategic by balking at an IPO. With talks of King planning for an IPO this year and the incredibly disappointing Zynga offering, Kabam does not want to make its way down a similar path. Though the company had three games ranked in the top 25 grossing apps on both iOS and Android at the end of 2012, it seems to be in no rush to go public.

Social Media 201

Mediabistro Course

Social Media 201

Starting October 13, Social Media 201 will provide you with hands-on instruction for gaining followers and engagement. Social media experts will teach you how to make social media marketing work for your bottom line and achieving your business goals. Register now!


Leave a Reply

Get the latest news in your inbox
interested in advertising with inside social games?

Social Media Jobs
of the Day

Social Media Manager

Washington, DC

Social Media Strategist

Philadelphia, PA

Vice President, Social

Start-Up Social Media Firm w/ Established Clients
New York, NY

Web Editor/Writer, Savvy in Social Media

New York, NY

Social/PR Manager

Small, hot SoCal ad agency
CamarilloCamarillo, CA

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More

Our Sponsors

Mediabistro A division of Prometheus Global Media home | site map | advertising/sponsorships | careers | contact us | help courses | browse jobs | freelancers | content | member benefits | reprints & permissions terms of use | privacy policy Copyright © 2014 Mediabistro Inc. call (212) 389-2000 or email us