The San Francisco-based online video game maker Kabam has been valued at a whopping $700 million. The online game company has really got a lot of money to its credit allowing its employees to sell common stock.
Kabam, after a sale of $38.5 million in former workers’ common stock, ended up worth a hefty $700 million. However, according to the Wall Street Journal, the company is not keeping any of the money. Kevin Chou, the CEO of Kabam spoke of how the 700 employees ought to benefit from the productive spike the company had seen recently. One of the fastest growing US online gaming companies, Kabam has the sweet smell of success all around it. Revenues that amounted to $180 million were raked in. These were 70% more than those made in 2012. Part of the reason for this phenomenon was Kingdoms of Camelot. This social game proved quite popular among the “in” crowd on Facebook.
Don't Miss: Today's Electronics Bargains at Woot.com
An initial public offering (IPO) is in the works too, although the exact date has remained unannounced. Next year seems a likely target. Kabam’s skyrocketing figures are quite a contrast to the failure of Zynga. Zynga has been in hot water since 2011. Its buying out of competitor company OMGPOP and lukewarm interest shown by gamers in its products have led to low morale. The problem is that Zynga has been lagging behind others in shifting its services to mobile devices. A reduction in dependence on social network sites would be ideal. And it is here that Zynga has made a big mistake. Meanwhile, Kabam has long since transferred its business. Now only 30% of its profits come from Facebook clients. Therefore, Kabam is a company from which Zynga may learn a thing or two.