08.12.2005 21:12:00
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EA to Acquire JAMDAT Mobile Inc. -- the Leader in North American Mobile Interactive Entertainment; Accelerates EA's Objective of Global Expansion in Mobile
EA and JAMDAT together plan to publish over 50 games for mobilephones in the first twelve months following the completion of theacquisition, including popular titles like Tetris, Bejeweled, JAMDATBowling, Need For Speed(TM), EA SPORTS Madden NFL(TM) Football and EASPORTS FIFA Soccer.
"This is an important strategic acquisition for Electronic Arts,"said EA Chairman and Chief Executive Officer Larry Probst. "Togetherwe intend to build a leading global position in the rapidly growingbusiness of providing games on mobile phones. We look forward to theJAMDAT team joining EA."
Headquartered in Los Angeles, JAMDAT has roughly 350 employees inlocations around the world, including Honolulu, Montreal, Tokyo,London, Bucharest and Hyderabad.
"We think the combination of EA and JAMDAT will benefit ourshareholders," said JAMDAT Chairman and Chief Executive Officer MitchLasky. "The combination of EA and EA SPORTS, along with JAMDAT'scasual blockbusters like Tetris, Bejeweled and JAMDAT Bowling, willcreate a powerful product line-up."
Upon closing, JAMDAT CEO Mitch Lasky will lead EA's mobile gamesbusiness worldwide. The mobile businesses will be combined into oneteam.
Transaction and Financial Information
-- The proposed acquisition has been approved by the board of directors of each company and is subject to customary closing conditions, including approval by JAMDAT's stockholders and regulatory approvals.
-- The acquisition is expected to close in EA's fiscal fourth quarter.
-- In EA's fiscal fourth quarter, non-recurring acquisition-related GAAP charges are expected to be between $0.10 to $0.15 per diluted share.
Conference Call
Electronic Arts and JAMDAT will host a conference call today,December 8, 2005, at 2:30 pm Pacific Time / 5:30 pm Eastern Time todiscuss the transaction.
In addition, EA will discuss recent trends in holiday sales.
Listeners may access the conference call live through a dial-innumber at (800) 819-9193, access code 4601662, or via webcast athttp://investor.ea.com. A dial-in replay of the conference call willbe provided until December 16, 2005 at (719) 457-0820, access code4601662. The webcast archive of the conference call will be availablefor one year at http://investor.ea.com.
About Electronic Arts
Electronic Arts (EA), headquartered in Redwood City, California,is the world's leading interactive entertainment software company.Founded in 1982, the company develops, publishes, and distributesinteractive software worldwide for videogame systems, personalcomputers and the Internet. Electronic Arts markets its products underfour brand names: EA SPORTS(TM), EA(TM), EA SPORTS BIG(TM) andPOGO(TM). In fiscal 2005, EA posted revenues of $3.1 billion and had31 titles that sold more than one million copies. EA's homepage andonline game site is www.ea.com. More information about EA's productsand full text of press releases can be found on the Internet athttp://info.ea.com.
Electronic Arts, EA, EA SPORTS, EA SPORTS BIG and POGO aretrademarks or registered trademarks of Electronic Arts Inc. in theU.S. and/or other countries.
About JAMDAT Mobile
JAMDAT Mobile Inc. is a global publisher of wireless entertainmentapplications, including games, ring tones, images and other content.JAMDAT's application portfolio is based on original and licensedintellectual properties and includes JAMDAT Bowling, Tetris(R),Downtown Texas Hold 'Em, Lemonade Tycoon(R), Bejeweled(R), The Lord ofthe Rings(R), Tony Hawk's(R) Underground and Scrabble(R). JAMDATdistributes its applications through wireless carriers around theworld. For more information, please visit www.jamdat.com.
Some statements set forth in this release, including thoseregarding EA's proposed acquisition of JAMDAT and the expected impactof the acquisition on EA's strategic and operational plans andfinancial results, contain forward-looking statements that are subjectto change. Statements including words such as "anticipate", "believe","estimate" or "expect" and statements in the future tense areforward-looking statements. These forward-looking statements aresubject to risks and uncertainties that could cause actual events oractual future results to differ materially from the expectations setforth in the forward-looking statements. Some of the factors whichcould cause results to differ materially from the expectationsexpressed in these forward-looking statements include the following:the requirement that JAMDAT's stockholders must approve thetransaction; the required receipt of necessary regulatory approvals,including under applicable antitrust laws; the possibility that thetransaction will not close or that the closing may be delayed; theeffect of the announcement of the acquisition on EA's and JAMDAT'sstrategic relationships, operating results and business generally,including the ability to retain key employees; EA's ability tosuccessfully integrate JAMDAT's operations and employees; generaleconomic conditions; and other factors described in EA's and JAMDAT'sSEC filings (including EA's Annual Report on Form 10-K for the yearended March 31, 2005 and Quarterly Report on Form 10-Q for the quarterended September 30, 2005, and JAMDAT's Annual Report on Form 10-K forthe year ended December 31, 2004 and Quarterly Report on Form 10-Q forthe quarter ended September 30, 2005). If any of these risks oruncertainties materializes, the acquisition may not be consummated,the potential benefits of the acquisition may not be realized, EA'sand/or JAMDAT's operating results and financial performance couldsuffer, and actual results could differ materially from theexpectations described in these forward-looking statements. Neither EAnor JAMDAT assume any obligation to update these forward-lookingstatements.
Additional Information and Where to Find It
JAMDAT has agreed to file a proxy statement in connection with theproposed acquisition. The proxy statement will be mailed to thestockholders of JAMDAT. JAMDAT's stockholders are urged to read theproxy statement and other relevant materials when they becomeavailable because they will contain important information about theacquisition and JAMDAT. Investors and security holders may obtain freecopies of these documents (when they are available) and otherdocuments filed with the Securities and Exchange Commission at theSEC's web site at www.sec.gov. In addition, investors and securityholders may obtain free copies of the documents filed with the SEC byJAMDAT by going to JAMDAT's Investor Relations page on its corporatewebsite at http://investor.jamdat.com.
JAMDAT and its officers and directors may be deemed to beparticipants in the solicitation of proxies from JAMDAT's stockholderswith respect to the acquisition. Information about JAMDAT executiveofficers and directors and their ownership of JAMDAT common stock isset forth in the proxy statement for JAMDAT's 2005 Annual Meeting ofStockholders, which was filed with the SEC on April 15, 2005.Investors and security holders may obtain more detailed informationregarding the direct and indirect interests of JAMDAT and itsrespective executive officers and directors in the acquisition byreading the preliminary and definitive proxy statements regarding themerger, which will be filed with the SEC.
In addition, EA and its officers and directors may be deemed tohave participated in the solicitation of proxies from JAMDAT'sstockholders in favor of the approval of the acquisition. Informationconcerning EA's directors and executive officers is set forth in EA'sproxy statement for its 2005 Annual Meeting of Stockholders, which wasfiled with the SEC on June 24, 2005, and Annual Report on Form 10-Kfiled with the SEC on June 7, 2005. These documents are available freeof charge at the SEC's web site at www.sec.gov or by going to EA'sInvestor Relations Website at http://investor.ea.com.
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