Benchmark-Backed Gaming Company Gaikai Is Seeking to Sell Itself for $500M: Report

Cloud-based gaming company Gaikai, which raised $30 million in venture capital about 11 months ago, has put itself on the block with a $500 million price tag, according to a Fortune report.

The news comes on the heels of a report by game industry website MCV on May 30 that Sony was “close” to inking a deal to buy Gaikai.

Gaikai has not commented on the report.

Gaikai, which means “open ocean” in Japanese, was founded in late 2008. The company, based near Los Angeles, has raised just over $45 million in venture capital since the start of 2010, according to Thomson Reuters (publisher of peHUB).

Benchmark Capital and an undisclosed firm did a $5.04 million Series A in January 2010. Five months later, Benchmark, TriplePoint Capital, Rustic Canyon Partners and others financed a $10 million Series B. Then, last July, Benchmark, Rustic Canyon, Intel Capital, Qualcomm Ventures and New Enterprise Associates poured $30 million into the company with a Series C led by NEA. (NEA invested $12.98 million in the Series C from its 13th fund, according to Thomson Reuters.) Gaikai also counts Akamai, Electronic Arts and Limelight Networks as investors, according to a Reuters report.

Of the four members on Gaikai’s board, three are VCs: Mitch Lasky, a general partner at Benchmark; Nate Redmond, a managing partner at Rustic Canyon; and Pal Hsiao, a partner with NEA, according to the company’s website. The fourth board member is David Perry, Gaikai’s CEO.

Image credit: Photo of boy with laptop courtesy of ShutterStock

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