Free-to-play specialist Kabam has claimed it has engaged in 'serious discussions' about a possible IPO, but the company wants to ensure the market understands the business of free-to-play games first.

Speaking with the Wall Street Journal, co-founder and CEO Kevin Chou said the firm is keeping an eye on how King's recently unveiled IPO is received "very closely."

A matter of understanding

"We had another very serious discussion about an IPO in our board meeting in January," detailed Chou.

"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.

"We also want to make sure that the market has a good understanding of free-to-play games."

Elsewhere in the interview, Chou – who was recently inducted into the PocketGamer.biz Hall of Fame – stated that the company believes that "the future of gaming is the free-to-play model", adding that it's "clear that consumers are using smartphones and tablets that they already own to play games."

"Gaming apps are among the most popular mobile apps," he concluded.

"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."

Kabam recently revealed its sales in 2013 came in above $360 million, with 11 games having grossed more than $1 million in a month across the course of the year.

[source: The Wall Street Journal]