Kabam Says Insiders Sold More Than $40 Million of SharesRob Golum and Sonali Basak
Kabam Inc., the closely held online video-game company, said employees and early investors sold more than $40 million in shares, the second such sale by insiders since July 2013.
Neither the buyers nor the sellers were identified by San Francisco-based Kabam, which received no proceeds, according to a statement. The company said the deal reaffirmed its value in excess of $1 billion, an increase from $700 million 16 months ago, when the last sale occurred.
Kabam chose this route rather than an initial public offering that would create new reporting demands and expose the company’s competitive plans, co-founder and Chief Executive Officer Kevin Chou said in the statement. In July, the maker of free-to-play games received a $120 million investment from Alibaba Group Holding Ltd. as part of a deal to bring its games such as “Fast and Furious” and “The Hobbit” to China.
Citigroup Global Markets Inc. acted as sole financial adviser to Kabam, according to the statement. O’Melveny & Myers LLP served as legal adviser. As with Kabam’s 2013 secondary offering, the company retained Second Market to facilitate the transfer of shares.
Kabam was profitable on sales of $360 million last year, according to the company statement.
The games are available on mobile devices via its own dedicated channel in the Apple App Store, Google Play, Amazon Appstore, and on the Web via Facebook, Yahoo, Kabam.com and other platforms, according to the company.
The company’s investors include Alibaba, Canaan Partners, Google Ventures, Intel Corp., Pinnacle Ventures, Redpoint Ventures and Warner Bros.
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