Analyst: EA-PopCap deal shows Activision as “myopic”

By Johnny Cullen, Thursday, 14 July 2011 11:08 GMT

An analyst at Panoptic Management Consultants has said the EA takeover of PopCap is a continued “focus on growth” at the company, but also shows Activision as “too myopic.”

“With the PopCap deal officially going through, I do think EA has further strengthened their position in mobile gaming. I applaud management for continuing to use their cash hoard with a focus on growth,” said Asif Khan, speaking to IndustryGamers.

“This is quite different than Activision’s policy of returning cash to shareholders through dividends and share buybacks. Activision seems too myopic when it comes to the growth opportunities in social and mobile gaming saying in previous conference calls that they are not so sure about the long term profitability of the new trend.”

EA announced on Tuesday evening that it was to buy the Plants vs Zombies, Bejeweled and Peggle company for $750 million. Read our analysis of it here.

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