EA buys JAMDAT for $680M

Electronic Arts (EA), the 800-lb. gorilla of the video game world, has purchased JAMDAT, the mobile gaming firm best known for Tetris, Bejeweled, and Doom, for $680 million. Some analysts believe EA overpaid for JAMDAT--after all, mobile games are only a $2 billion slice of the $30 billion video games market--but EA seems to be banking on heavy growth predictions for mobile games. The deal also puts EA in a position to quickly create mobile versions of its "franchise" games like Madden and Need for Speed. EA is expected to release 15 to 20 mobile titles this year. As part of the deal, JAMDAT chief Mitch Lasky will replace John Batter as head of EA's mobile division. Analyst reactions | Conference call transcript