Shares jump for buyer
of Blue Lava Wireless

Jamdat Mobile, based in
Los Angeles, gains $2.48 after
it announces it is purchasing
the local company

The stock of Jamdat Mobile Inc. surged yesterday after it announced a deal to buy Honolulu-based Blue Lava Wireless LLC, acquiring rights to publish the popular Tetris game on mobile phones.

Under the cash-and-stock deal valued at $137 million, Los Angeles-based Jamdat acquired a 15-year exclusive worldwide license to publish Tetris games for mobile phones from the Tetris Company LLC.

Tetris Company owns the Tetris brand and previously licensed it to Blue Lava, a closely held mobile-gaming company.

Shares of Jamdat rose $2.48, or 16 percent, to close at $18.19 on the Nasdaq Stock Market.

To acquire Blue Lava, Jamdat is paying $60 million in cash, 4.05 million shares of Jamdat stock valued at $64 million at the close of trading Wednesday and a deferred payment of $13.7 million in cash or stock.

Tetris was invented by a computer programmer in the former Soviet Union in 1985. Players manipulate blocks of various shapes with the goal of forming a full row of blocks on their screens.

Jamdat, which develops games, ring tones and other entertainment products for mobile phones, will report its first-quarter results May 5.

The company, which held its initial public offering in September, said it estimates its first-quarter revenue was $15 million, higher than the $14.1 million it previously forecast for the period.

In addition, Jamdat's estimated earnings were higher than a previous forecast of 8 cents a share.