Kabam's LA office closure ends Netmarble's Hollywood IP strategy
Summary
Kabam confirmed consolidation of its Los Angeles office in June 2026, with an undisclosed number of layoffs
The LA studio was built in 2015 specifically to deepen Hollywood IP relationships - closure reverses that thesis
Move ends Netmarble's decade-long bet on a Western mobile studio anchored in LA
"Following a review of strategic priorities, Kabam made the decision to consolidate its LA office and streamline operations"
01
LA was a Hollywood IP bridgehead, not a generic studio
Kabam entered LA in 2015 via acquisitions of Tapzen and Magic Pixel Games, merged into a Culver City studio
Leadership at the time framed the move as strengthening "deep" relationships with Hollywood partners
The LA base anchored licensing deals including the Marvel partnership behind Contest of Champions
Netmarble US was folded into Kabam in 2022, reinforcing LA as the combined entity's Western anchor
02
Consolidation reverses Netmarble's Western expansion arc
Netmarble acquired Kabam's Vancouver studio and Marvel Contest of Champions in 2016, making Kabam its primary Western vehicle
The 2022 Netmarble US merger was the last structural move expanding LA - this consolidation unwinds it
Prior cuts: ~7% of staff in an earlier restructure, 35 employees in November 2022, undisclosed in June 2026
Pattern signals systematic Western headcount reduction, not isolated efficiency moves
03
What Kabam is protecting versus what it is abandoning
Spokesperson says Kabam "remains focused on its slate and committed to its partners" - existing IP deals stay
Marvel Contest of Champions crossed $2bn in mobile revenue and expanded to PC in 2025
What is being wound down is the infrastructure to originate new Hollywood IP relationships
No replacement structure for Western IP origination has been disclosed
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