In a recent Wall Street Journal interview with Kabam CEO Kevin Chou, it was revealed that the company is considering seeking an IPO similar to the one King announced earlier this week. The co-founder and Chief Executive Officer of the major F2P games publishing house indicated that he’s watching how King’s IPO turns out “very closely.”
“We had another very serious discussion about an IPO in our board meeting in January. Our revenue is growing rapidly and we have been profitable since 2012. We have over $70 million of cash in our bank account. We are at the scale, where we can actively consider an IPO. But we also want to do it when the time is right, and we don’t have a definitive timeframe yet,” stated Chou.
Kabam has been a leader in the mobile app game industry. The company believes strongly in potential of mobile games and the free-to-play model. They had immense success with titles like Kingdoms of Camelot, Fast & the Furious, The Hobbit, and Dragons of Atlantis.
During the interview Chou gives his opinion on the direction the industry is heading and says, “I think the future of gaming is the free-to-play model, and it’s very clear that consumers are using smartphones and tablets that they already own to play games. Gaming apps are among the most popular mobile apps.”
“Mobile devices are affecting not only the gaming industry, but also the way people watch television shows and videos and listen to music. That has an implication for all kinds of dedicated devices such as music and video players as well as game consoles,” he adds.
When asked about Kabam’s partnership with Google, Chou responded by saying, “Google is one of our major investors, and its venture capital arm, Google Ventures, has a board seat at Kabam. We spend a lot of time talking about possible games for Google Glass, even though we haven’t announced any specific Google Glass projects yet.
It will be interesting to see if IPO will become a common venture between major game publishers like King and Kabam.
(Source: Wall Street Journal)