Employee stock sale puts Kabam's value at US$700 million
Kabam's employees were allowed to sell common stocks worth US$38.5 million. The results of the private transactions placed the value of the videogame maker to US$700 million. None of the proceeds of the sale will go to Kabam. The company wanted its 700 employees to benefit from the value they create in the company as it continues to grow, said Kevin Chou, Kabam's CEO.
"In the last 12 months, Kabam has launched North America's most successful game publishing and platform business, bringing over 20 high quality titles to market. Our talented employees are the ones making these efforts so successful," he said in a statement.
Plans of going public were not confirmed by a Kabam spokeman. However, Chou has said in the past that he expected an IPO by the end of next year.
The company's latest fund raising activity was held last May 2011. This funding round raised US$85 million. Google Ventures, MGM, Intel, and Warner Brothers were a few of the company's investors.