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What Are EA's Reasons For Purchasing Playfish?

November 9, 2009

Analysis of:Electronic Arts Buys Playfish For At Least $275 Mln | online.wsj.com

Electronic Arts (ERTS) is acquiring development and marketing expertise in a non-traditional and fast-growing segment of the video game industry EA is also taking ownership of Playfish's valuable player network, which can be heavily leveraged via future cross promotional tactics. EA may be overpaying -- only time will tell -- but EA's interest in the social-network game space is merited, and Playfish was likely the "cheapest" of the three established game developers in this space.

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