July 16 (Reuters) - Machine Zone Inc, the developer of popular mobile game “Game of War: Fire Age,” is in talks with JPMorgan Chase & Co to raise funding that could value the company at more than $3 billion, the Wall Street Journal reported, citing people familiar with the matter.
The expected valuation would make the Palo Alto, California-based company one of the biggest startups in the world in terms of market cap, the report said. (on.wsj.com/1nxZIII)
Machine Zone is expected to raise about $250 million in a private placement, Bloomberg News reported, citing a person with knowledge of the company. (bloom.bg/1ncjxLh)
The company, launched in 2008 as a dating app developer, renamed itself as Machine Zone in 2012 and shifted its strategy to focus on mobile games, according to the Journal.
“Game of War” is known for its built-in translator that helps multiple players across the world interact online without language barriers.
Machine Zone is trying to raise private funding months after a weak market debut by mobile game developer King Digital Entertainment Plc, dashing hopes that its coming-out party could revive investor interest in the mobile gaming industry.
King’s IPO price of $22.50 valued the company at about $6 billion. (Reporting by Amrutha Gayathri in Bangalore; Editing by Prudence Crowther)