Kabam valued at $700m

Social gaming firm Kabam has been valued at $700 million following a private sale of $38.5 million in common stock.

The firm, which is behind the free-to-play and social games such as Edgeworld (pictured) and licensed titles such as The Hobbit, now has 700 employees worldwide.

Kabam CEO Kevin Chou organised the sale so that employees and investors would benefit from its swift growth.

“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,” Chou said in a statement to the Wall Street Journal.

“Our talented employees are the ones making these efforts so successful.”

In January this year, Kabam’s revenues were exceeding $200m. However, last month it laid off a small number of staff as part of its transition to mobile development.