EA to Acquire Codemasters for $1.2 Billion - Gaming News

Initial expectations pointed to Take-Two Interactive completing a nearly $1 billion acquisition of Codemasters. An agreement had even been established with Codemasters’ board of directors. However, Electronic Arts intervened with a competing offer, ultimately proposing a higher price. EA is now set to purchase Codemasters for $1.2 billion.

Reports from Sky News initially indicated EA was preparing a counter-offer designed to supersede Take-Two’s bid. Subsequently, EA formally announced reaching an agreement with the Codemasters board.

For those unfamiliar, Codemasters is a British video game developer with a long history, having been established in 1986. This makes it one of the longest-running game studios still in operation. Over the years, the company has both developed and published a wide variety of titles, with a recent emphasis on racing games encompassing franchises like Dirt, Dirt Rally, Formula One, Grid, and Micro Machines.

EA’s offer values Codemasters at £6.04 per share, equivalent to $7.98, and will be executed as an all-cash transaction. The completion of this acquisition is anticipated in the first quarter of 2021.

EA’s involvement with racing games has experienced fluctuations. While the company is responsible for the highly successful Need for Speed series, its focus on racing titles has diminished in recent years, resulting in some less well-received releases.

In 2004, EA previously acquired Criterion Games, the studio renowned for the Burnout series. However, Criterion Games has since primarily functioned as a support studio, contributing to projects like Battlefield and Star Wars Battlefront. Update: Criterion Games has resumed lead development on Need for Speed titles.

The acquisition will allow Codemasters to leverage EA’s extensive distribution network, including the EA Play subscription service. This development enhances the appeal of EA Play for enthusiasts of racing games.

Take-Two likely did not foresee losing this acquisition opportunity, but the company remains in a strong position. Take-Two’s portfolio includes Rockstar Games (creators of GTA and Red Dead), Firaxis Games (Xcom and Civilization), 2K Sports (NBA 2K), and numerous other studios.

2020 marked a significant year for consolidation within the video game industry. Microsoft has been at the forefront of this trend, acquiring ZeniMax Media – the parent company of Bethesda, id Software, and Arkane. Microsoft has also added Double Fine Productions, Obsidian Entertainment, and Ninja Theory to its holdings in recent years.