Gaming Giant EA Snaps Up Codemasters For $1.2 Billion In Eleventh Hour Bid
Video gaming giant Electronic Arts (EA) revealed it will acquire UK game developer Codemasters for $1.2 billion after a successful counterbid.
American video gaming company Take-Two had initially reached an agreement to buy Codemasters for $1 billion, however EA intervened at the eleventh hour and offered $200 million more for the sale.
“The Codemasters Board has considered various aspects of the EA Offer and considers the EA Offer to represent a superior offer for Codemasters’ shareholders as compared with the Take-Two Offer,” the British firm said in a release.
Codemasters has published racing games on consoles, PC and mobile for three decades and EA says the acquisition is part of a bid to “lead the video game racing category”.
“We believe there is a deeply compelling opportunity in bringing together Codemasters and Electronic Arts to create amazing and innovative new racing games for fans,” said EA CEO Andrew Wilson.
“Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment.”
Codemasters is most known for developing popular racing games such as Formula One, Dirt and Dirt Rally. EA’s subscription service will also offer Codemaster games.
The sale is expected to be finalised in the first quarter of 2021.
2020 has been a huge year for gaming consolidation after Microsoft bought ZeniMax Media, the parent company of Bethesda, id Software and Arkane.