Jamdat Investor Sues EA

As a follow-up to the announcement that Jamdat was being purchased by powerhouse Electronic Arts, Gamespot has the news that a Jamdat investor is suing to stop the business deal. From the article: "While Wedbush Morgan Securities analyst Michael Pachter said EA 'bought Jamdat for a fair price if they intend to get big,' some questioned the premium paid to become an instant player in the growing mobile market. Piper Jaffray's Anthony Gikas said the $680 million figure was actually $200 million too high. Even so, Gikas favored EA's purchase in a note to investors, telling them, 'don't sweat the small stuff.'"

Comments

I Wonder

[thebdj]

Does the person actually have a viable case here? The prices of Jamdat's stock did go up after the sale announcement to nearly the price per share they were going to pay. I am also wondering if Jamdat was offering themselves up or if EA just came in with an offer at random.

If the latter is true, then he might have a bit more of an argument because it looks like the company saw the dollar signs and took the money and ran. At that point they probably should have started telling some other possibly interested peoples of the offer and see if anyone was going to counter.

If the first is true, then I would imagine that Jamdat fielded a great many offers from different companies and got several figures before settling on EA's. While this does not necessarily mean they accepted the highest offer, it does mean they attempted to find out how much the company was worth to other individuals and not just blindingly accepting EA's offer.

Frontpage Material

[ObsessiveMathsFreak]

This is ./ frontpage material. The near complete lack of comments shows just how little the average games section frequenter actually cares about mergers and hostile takeovers. It would be nice if there was a way of moving this to the YRO section at the very least.

I mean, this story is far more industry and legal based than it is about games.