Kabam develops and publishes free-to-play mobile games, offering both first- and third-party titles on the Apple App Store, Google Play, and Amazon Appstore. In 2012 it launched Kabam Publishing to provide third-party developers access to its platform, distribution channels, data analytics and best practices. The company has more than 850 employees and is headquartered in San Francisco. Kabam's 2013 revenues exceeded $360 million, a 100% increase over 2012; it has created four titles that have each grossed more than $100 million, and Kingdoms of Camelot has grossed more than $250 million. The company is valued at more than $1 billion and is profitable and cash-flow positive. Kabam has been expanding its global footprint and is pursuing expansion into Asia through a strategic partnership with Alibaba. Kabam is a mobile game developer known for titles such as Dragons of Atlantis and licensed franchise games tied to Fast & Furious, Lord of the Rings and The Godfather, and for buying naming rights to UC Berkeley’s Memorial Stadium. The company has generated blockbuster revenue on some titles — games like The Hobbit: Kingdoms of Middle-earth and Kingdoms of Camelot have each generated more than $100 million in revenue. Kabam is expanding into China and plans to launch a Lord of the Rings title in the U.S. later this year that will also serve as its China debut. To support that push, Kabam conducted market and user research on genre and IP preferences and is preparing to culturalize its games for fragmented Android ecosystems and varied payment SDKs. The company faces significant operational challenges in China but views the market as a major opportunity, representing roughly 50% of the global gaming market. Its recent financing has materially improved its financial standing and enabled a strategic distribution partnership in Asia. Kabam is a San Francisco midcore game studio known for titles such as Kingdoms of Camelot and three games among the top 25 grossing iPhone titles in the U.S. The company transitioned from Facebook to mobile platforms and focuses on midcore mobile games. Kabam says it may generate about $300 million in revenue this year, up from $180 million last year. Management reports the company is profitable and had more than $50 million in cash on hand at the time of the article. Cash was roughly $45 million in January, implying a modest increase over six months. CEO Kevin Chou has previously discussed IPO prospects, but the company is currently using other mechanisms to deliver liquidity to employees. Kabam is a developer of mobile midcore and freemium games, known for titles such as Kingdoms of Camelot and The Hobbit: Kingdoms of Middle-Earth. The company pivoted from Facebook midcore games to focus on iOS and Android, where several of its titles rank in the top 50 grossing charts. The Hobbit: Kingdoms of Middle‑Earth performed well, reaching #21 on the U.S. iPhone top‑grossing chart. Kabam has an ongoing partnership using Lord of the Rings/Hobbit intellectual property and is developing another Hobbit title, The Hobbit: Armies of the Third Age, which is in beta and planned for release early next year. Financially, the company has raised about $125 million in venture capital across four rounds. Kabam’s CEO has mentioned loose plans for an eventual IPO, though the article notes public markets have been challenging for freemium gaming companies. Kabam develops hardcore social games that combine the depth of traditional MMO gameplay with social-network connectivity and synchronous play. Its Facebook lineup includes Kingdoms of Camelot, Dragons of Atlantis, Glory of Rome and Global Warfare, all enabling alliances and real-time competition. The company operates a free-to-play business model and grew headcount from 25 to over 400 employees in the past 16 months. Founded in 2006, Kabam has offices in San Francisco and Redwood City, Calif., Beijing and Luxembourg. Kabam expects to release at least five more titles through the end of 2011. Following an $85 million Series D, the company reported total funding of $125 million to support franchise building, international expansion (particularly in Asia) and potential acquisitions.

Total raised

$235M

Funding rounds

4

Latest round

Equity

Latest activity

Jul 2014