Social game maker Kabam eyeing $50M secondary offering (Updated)

Kabam

Kabam CEO Kevin Chou. He's one of four cofounders in the profitable, seven-year-old social gaming company.

	Sponsored Links
	Unified Communications Buyers Guide Download Unified Communications Buyers Guide and compare solutions now www.shoretel.com
	Still Sorting Through Paper Resumes? Try an Applicant Tracking System that can Simplify the Hiring Process! Free Demo www.iCIMS.com/ApplicantTracking
Get Listed Here

Luke Stangel: Contributing writer- Silicon Valley Business Journal; Email

See correction at end of article.

Social game maker Kabam is reportedly shopping around a $50 million secondary offering, ahead of its much-rumored IPO.
PandoDaily reports Kabam’s valuation has scared off some investors. The company’s most recent round of financing—an $85 million Series D led by Google Ventures in 2011—valued the company at $500 million.
Kabam spokesman Steve Swasey confirmed that the company is exploring a secondary offering, which would allow early employees to cash out their shares. Kabam is not raising a venture round.
The San Francisco gaming studio makes more than 20 games, notably the massive multiplayers Kingdoms of Camelot (which has 1 million fans on Facebook) and Dragons of Atlantis (which has 1.1 million fans). Its mobile title, Fast & Furious: The Game, launched earlier this year and saw 17 million installations in its first month.
The company reportedly pulled in $180 million in revenue in 2012, and has $50 million in cash on the books.
Kabam was founded in 2006 by Kevin Chou, Michael Li, Holly Liu and Wayne Chen. The company has acquired six competing game studios so far—Exploding Barrel Games, Balanced Worlds Studio, Gravity Bear, Wild Shadow Studios, Fearless Studios and WonderHill.
The company has raised $125 million in four rounds of funding from a number of investors, notably Canaan Partners, Redpoint Ventures, Intel Capital, Google Ventures and Pinnacle Ventures.
Click here to subscribe to TechFlash Silicon Valley, the free daily email newsletter about founders and funders in the region.

Correction

An earlier version of this article incorrectly identified Kabam's headquarters, and the nature of its financing deal. The company is exploring a secondary offering of stock, not a venture round.