Jamdat Mobile Inc. announced a $137 million deal to buy Hawaii-based studio Blue Lava Wireless, granting the California publisher highly prized rights to produce the popular “Tetris” title for mobile phones.
Under terms of the acquisition, Jamdat immediately gains exclusive worldwide rights to publish “Tetris” in North America, Latin America and India, marking the first time the title will be distributed in the latter two markets. The company will gain licensing rights to other global markets at year’s end, when current licensing deals expire. Jamdat said the acquisition is expected to add to this year’s earnings per share by 10 cents.
The company also revised its projected first-quarter revenues and earnings per share upward, saying it expects to report earnings for the quarter at $15 million, up from its prior review of $14.1 million. Blue Lava’s financial results are not included in the projected first quarter numbers, Jamdat said.
Under terms of the deal, Blue Lava founder will manage Jamdat’s “Tetris” franchise and join its board of directors.
” ‘Tetris’ is a killer wireless gaming application, and together with our existing content portfolio, we believe we will have an unmatched product offering for carriers and consumers,” said Mitch Lasky, Jamdat’s chairman and chief executive officer. “The acquisition will also enhance Jamdat’s global distribution strength and increase our market share in Europe and Asia.”
Jamdat shares jumped 15 percent to $18.07 in morning trading Thursday after a $15.71 Nasdaq close Wednesday.
