American video game company Electronic Arts is set to buy out UK’s Codemasters for an approximated amount of $1.2 billion. The deal will be finalized during Q1 2021.
If completed, Codemasters would rank as EA’s largest deal in its history. In addition, EA will now become a formidable force in the racing world.
The company already boasts of high grossing titles like FIFA soccer and Need for Speed franchises. On the other hand, Codemasters’ reputation builds from racing titles like Formula One and Dirt.
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EA Chief Executive Andrew Wilson believes the deal will benefit both parties. Wilson notes that:
“We believe there is a deeply compelling opportunity in bringing together Codemasters and EA to create amazing and innovative new racing games for fans. Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment.”
EA beats Take-Two to acquire Codemasters
EA’s bid comes after American based Take-Two attempted to buy Codemasters for about $1.01 billion (£759 million). Take-Two’s offer is a combination of cash and shares. Take-Two is the maker of Grand Theft Auto and NBA 2K games.
However, reports indicate that Codemasters shareholders have expressed dissatisfaction with the Take-Two deal. Most specifically, the equity component has been a ball of contention.
The acquisition comes in the backdrop of the gaming sector’s popularity during the coronavirus pandemic. The pandemic left a majority of people to turn to gaming as a way of keeping entertained.
