A Gaming Startup That's Actually Profitable Is Now Worth $700 Million

Online gaming company Kabam is now worth $700 million following a recent sale of $38.5 million worth of current and former employees' common stock, The Wall Street Journal reports.

But none of the money will go to the company itself, Kabam CEO Kevin Chou said in a statement.

“It’s all going to employees who wish to sell their shares, and it’s of course a voluntary program," Chou said.

Kabam is best known for games like Kingdoms of Camelot and The Fast & Furious 6: The Game. Last year, it saw $180 million in revenue, up 70% from the year before.

Chou has previously said that he expects to take the company public by the end of 2014. But Kabam declined to comment on an IPO to the WSJ.

Kabam's success is proving that the gaming business can be a highly lucrative one, despite what happened with Zynga.

Since going public in 2011, Zynga has been in a downward spiral. Earlier this month, its founder Mark Pincus recently gave up his chief executive title to former Xbox boss Don Mattrick.

Unlike Zynga, Kabam has been able to tackle mobile very well, rather than just relying on Facebook to reach users.

Kabam has $50 million in the bank and expects revenues of more than $300 million this year.