Editor's Corner: Spotlight on Jamdat

Jamdat's size, licensing properties, and strategy of expansion via acquisition make it a very closely watched company. There was, therefore, significant speculation surrounding the company's second-quarter earnings, which were released last Thursday.

Jamdat posted revenue of $19.3 million, which is up 128 percent from the same period a year ago. Unfortunately the company missed Wall Street's earnings estimate and the stock plunged 25 percent. Jamdat was also required to file documents detailing some of its past acquisitions, most notably the $137 million purchase of Blue Lava Wireless, which gave Jamdat exclusive 15-year rights to wireless versions of Tetris.

Despite problems on the Street, Jamdat will remain a major force in mobile gaming; but true gaming giants, like Electronic Arts and Microsoft, are beginning to move into the space and, according to The Motley Fool, Jamdat's best bet may be to sell out. Indeed, the company is rumored to be for sale, with potential suitors that include EA, Microsoft (for the XBox division, MSN, or the mobile division), and News Corp.'s new Fox Interactive Media. - Eli