FTC approves Jamdat acquisition deal

Following a governmental review of Electronic Arts' proposed acquisition of mobile specialists Jamdat, the Federal Trade Commission has found no breach of anti-trust laws - effectively approving the USD 680 million deal.

First announced at the beginning of December 2005, the acquisition deal, which will be the largest consolidation move in the mobile industry to date, is expected to complete by March 31st.

On completion, current Jamdat CEO Mitch Laskey will head up EA Mobile's worldwide operations, working 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.

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 argues that the acquisition deal was flawed, and has requested that the courts prevent the deal from closing on the grounds that Jamdat is selling the company for too little.

"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.