News Corp. Officially Closes Purchase of Jamba Controlling Interest

News Corp. has now finalized its purchase of a controlling interest in off-deck mobile entertainment company Jamba. The deal, first announced in September, involves the acquisition of a 51 percent stake in the company for $188 million. Verisign will continue to control 49 percent of the Jamba entity, which flies under the name Jamster in the United States. The deal has passed all regulatory and due diligence tests, according to an announcement issued Tuesday. The purchase will combine the assets of Fox Mobile Entertainment and Jamba, part of a joint venture arrangement. Additionally, the combined entity will be headed by Lucy Hood, formerly head of the Fox Mobile Entertainment.
Both groups have colorful roles in the early history of mobile entertainment. Jamba is famous for creating the Crazy Frog ringtone, a near-ubiquitous sensation across regions of Europe and the world. The company is a leader in the off-deck space, though the company has been targeted following widespread consumer complaints about misleading pricing plans. Meanwhile, Fox Mobile Entertainment first charged onto the scene through American Idol, a program that cleverly incorporated text-messaging to compile viewer votes. Moving forward, Fox is likely to use the Jamba partnership to further develop its properties on the mobile screen, and draw more revenues in the process.
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