Warner Bros and MGM Invest in Social Networking Games Company Kabam

Hobbit game publisher Kabam announced that it secured investments from Warner Bros. Entertainment and Metro-Goldwyn-Mayer Studios (MGM). Terms of the deal were not disclosed, though it should be noted that Warner Bros. owns the rights to the upcoming trilogy of Hobbit films.

"Partnering with Warner Bros. and MGM is a natural fit for Kabam as we create new story lines and extensions of Hollywood studios’ intellectual properties for millions of gamers worldwide," said Kabam co-founder and CEO Kevin Chou. "Either Kevin Tsujihara or Gary Barber would be a tremendous addition to any growing entertainment company’s board. To have both is a boon to Kabam."

The Hobbit

Kabam recently released The Hobbit, Kingdoms of Middle-earth, a game it co-developed with Warner Bros. Interactive Entertainment. It's based on The Hobbit Trilogy, which is being produced by New Line Cinema and MGM, and the novel by J.R.R. Tolkien. Kabam's game is the ninth top-grossing mobile app on Google and a top 25 grossing mobile app on Apple in the U.S.

"We partnered with Kabam almost a year ago to deliver incredible games for The Hobbit trilogy, arguably one of the top intellectual properties in the world," said Mr. Tsujihara. "As we worked with Kabam, it became clear that a closer, more strategic partnership made sense for us both. Kabam is a leader in the industry and we look forward to being a part of their continued growth."

Kabam is based in San Francisco with offices in Austin, Texas, Bejing, and Luxembourg. It's home to over 550 employees.