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Yahoo! makes buy to further wireless gaming

Internet giant Yahoo! Inc. jumped headfirst into the mobile gaming waters Friday, acquiring New Jersey-based technology company Stadeon Inc. and launching a studio to develop games for wireless phones.

Terms of the deal were not disclosed.

The portal said it will use the Stadeon acquisition to extend its portfolio of Web-based community games from computers to handhelds, using Stadeon’s technology to deploy cross-platform multiplayer games. The service is expected to be offered through all major carriers this year.

Yahoo! plans to market turn-based, mobile-to-mobile and mobile-to-computer games that exploit the interactive abilities of handsets and minimize network lag times.

Meanwhile, Yahoo! Games Studio, which has already developed games for Verizon Wireless, will expand its product line and produce games for other carriers. Last year, the game publisher began offering its titles through Yahoo!’s mobile site.

The studio will be based on a new media campus the firm is building in Los Angeles.

Friday’s announcements are seen as a way for the company to expand its online gaming business, which analysts say is among the nation’s most popular. Yahoo! Games’ site drew 12 million U.S. users in January, outpacing competitors such as America Online Inc., Electronic Arts Inc. and Microsoft Corp.

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