FTC approves EA's acquisition of Jamdat
Publishing giant's mobile arm on track for massive expansion
EA Mobile is one step closer to completing the largest consolidation deal in the mobile industry after a Federal Trade Commission review found no breach of anti-trust laws and approved the acquisition of mobile specialists Jamdat.
On completion, current Jamdat CEO Mitch Laskey will head up EA Mobile's worldwide operations, and work towards establishing a stronger presence in markets outside of North America.
The newly expanded EA Mobile will have complete control over Jamdat's most successful franchises, including Bejewelled and the top selling Tetris mobile games. The company intends to publish over 50 titles in the year following the acquisition, creating a powerful position in the mobile markets and mirroring the company's dominance in the traditional videogame space.
EA's acquisition looks set to complete on schedule following the FTC ruling, though there are still customary closing conditions to adhere to. However, whilst approval for the deal has been almost unanimously granted, the class action lawsuit filed by one Jamdat shareholder remains unresolved.
Elliot Fox has sought to prevent the closure of the deal on the grounds that Jamdat's board of directors have agreed to sell for too little, and is determined to have the deal declared unlawful and unenforceable.
"The proposed acquisition is the product of a hopelessly flawed process that was designed to ensure the sale of Jamdat to one buying group and one buying group only, on terms preferential to Electronic Arts," Fox stated.
EA, Jamdat and industry analysts presented a different view of the situation, stating that the proposed deal was richly valued. One analyst claimed the USD 680 million offer was almost USD 200 million too high.
As the court action continues, EA and Jamdat expect the acquisition and merging of the two firms to be completed by March 31st.