SAN FRANCISCO--(BUSINESS WIRE)--Kabam Inc., today announced the completion of a secondary offering of more than $40 million, the second such offering in 16 months. Kabam employees and early investors were the beneficiaries as those holding common stock or stock options were able to sell a portion of their vested shares and options to the investors in this secondary round. No proceeds were raised by Kabam in this offering.
Kabam had its first all-common secondary offering in July 2013 and at that time had a valuation of $700 million. Today Kabam is valued at more than $1 billion and is profitable. This transaction comes only a few months after the completion of the recent large investment from Chinese e-commerce giant Alibaba.
“Investors and strategic partners want to be a part of Kabam,” said Kabam Co-Founder and CEO Kevin Chou. “As Kabam has grown and expanded its global footprint, we wanted to reward the employees who have worked so hard for the company’s growth and the investors who have believed in Kabam from the beginning, without having to go public. We have chosen liquidity options other than an IPO because staying private longer has many advantages, including not exposing our competitive roadmap or needing to meet the quarterly demands of public investors.”
Kabam is not naming the investors. However, COO Kent Wakeford said it was a combination of both current financial investors as well as new strategic investors, proving “Kabam’s growing value and importance.”
“This is an extremely significant round in Kabam’s fundraising history. It’s the second time in 16 months that Kabam has given employees and early investors an opportunity to realize liquidity while retaining all the benefits of operating privately. Just as importantly, it is allowing new investors and strategic partners to participate in and contribute to our success” said Kabam CFO Steve Klei who has raised approximately $600 million across five companies, including this offering, during his career.
Citigroup Global Markets Inc. acted as sole financial advisor to Kabam. O’Melveny & Myers LLP served as legal advisor to Kabam. As with Kabam’s 2013 secondary offering, Kabam retained Second Market to facilitate the transfer of shares.
Chou, Wakeford and Klei have had a busy year attracting capital to Kabam. In August, the company announced a strategic partnership with Alibaba, which included a $120 million investment from the Chinese e-commerce giant to help drive Kabam’s expansion into Asia.
Kabam is the leader in the western world for free-to-play games for traditional players with first and third party published titles. Kabam games are available on mobile devices via its own dedicated channel in the Apple App Store, Google Play, and Amazon Appstore. Kabam is the 6th fastest growing company overall in North America, according to Deloitte LLP. Kabam's 2013 revenues exceeded $360 million, a 100 percent increase over 2012. The company is valued at more than $1 billion, is profitable, cash-flow positive, and has created four titles that have grossed more than $100 million each in their life. Kabam's Kingdoms of Camelot franchise has grossed more than $250 million, making it one of the top 10 strategy franchises of all time. In 2012, Kabam Publishing was launched to provide third-party developers access to Kabam's technology platform, distribution channels, data analytics and best practices that Kabam's in-house development teams use to bring wildly successful games to players worldwide. Kabam has more than 850 employees around the world, with corporate headquarters in San Francisco. The company's investors include Alibaba, Canaan Partners, Google, MGM, Intel, Pinnacle Ventures, Redpoint Ventures, Warner Brothers and others. More information about Kabam can be found at www.kabam.com.