Alibaba Invests $120M In Mobile Gaming Firm Kabam

San Francisco-based mobile game developer Kabam Inc. says it has entered into a strategic collaboration with China’s Alibaba Group to publish popular Kabam mobile games in China across Alibaba Group’s mobile applications including Mobile Taobao and messaging app Laiwang, according to a company announcement made by Kabam.

Kabam will also receive an investment of approximately US$120 million from Alibaba Group. Specific terms of the investment were not disclosed.

Kabam’s games include those associated with popular movie titles such as Kingdoms of Camelot: Battle for the North, The Hobbit: Kingdoms of Middle-earth, Fast & Furious 6: The Game, and Dragons of Atlantis: Heirs of the Dragon.

“Truly successful games companies have to be globally successful,” says Kabam’s CEO Kevin Chou. “This strategic collaboration with Alibaba provides Kabam the resources, infrastructure and distribution to help bring our current and future durable franchise games to China and elsewhere in Asia.”

China and other Asian markets play a key role in the growth and success of Kabam. The company opened an office in Beijing four years ago, and develops many of its mobile titles there including The Hobbit: Kingdoms of Middle-earth, as well as Kingdoms of Camelot: Battle for the North, each of which has generated more than US$100 million in revenue.

Kabam also created the US$50 million Worldwide Developers Fund, which delivers hit games from Asia developers to a global audience.

Kabam games are routinely among the top 25 grossing games on the app store charts. In 2013, Kabam had two of the top ten grossing apps in the App Store. Kabam closed 2013 with more than US$360 million in revenues, a 100% increase over 2012, according to the announcement.

Alibaba Group joins a roster of existing high-profile Kabam investors that includes Google Ventures, Warner Brothers, MGM, Intel Corporation, Canaan Partners, Redpoint Ventures, and Pinnacle Ventures.