Zynga paid too much for OMGPOP says EA CEO

May 7, 2012
Zynga paid too much for OMGPOP says EA CEO

Sometimes in life we all make impulse buys that we regret. But not often does it involve a $180 million purchase. As such, Zynga doesn't have a lot of company to console itself if it ever has buyer's remorse when it comes to OMGPOP, the one-trick pony that developed the incredibly popular mobile game Draw Something. The only problem is that Draw Something is starting to fizzle out just a matter of weeks after the acquisition happened.

So was it a mistake for Zynga to snatch up the mobile gaming startup so quickly, and for so much money? At least one person in the industry thinks so, and he has a little bit of clout. He is, after all, the CEO of one of the biggest video game companies in the industry. John Riccitiello blasted the deal in a conference call with analysts today. He was quoted as saying that EA is not the kind of company that throws around money just to buy an "instant one-hit wonder."

"There’s an awful lot of noise around a brand when it rises" but "You have to have a belief that it will last for a very long time," he continued. It's somewhat ironic coming from EA, which has been accused of being an acquisition hoarder itself. But Riccitiello said there was a distinction, and he pointed out that EA likes to "invest" in smaller companies, not just swallow them after they make a little blip on the industry's radar. However you put it, if you have EA saying negative things about the acquisition of a smaller gaming studio, then it's probably pretty bad.

[via VentureBeat]

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