Back in November, Take-Two Interactive showed interest in acquiring racing game developer Codemasters. In what would have been a deal worth nearly $1 billion, it appears that it will no longer be happening.
This is not because Take-Two decided to retract their offer, but instead of the fact that Electronic Arts has outbid Take-Two to acquire Codemasters for approximately $1.2 billion. That comes out to $7.98 per share, and the acquisition is expected to complete in the first quarter of 2021.
Electronic Arts believes that this acquisition will benefit both Codemasters and Electronic Arts, specifically their racing franchises.
"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. Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment. We have admired Codemasters' creative talent and high-quality games for many years. With the full leverage of EA's technology, platform expertise, and global reach, this combination will allow us to grow our existing franchises and deliver more industry-defining racing experiences to a global fan base. We are pleased that both our Boards of Directors are recommending this transaction, and we look forward to welcoming such an exciting and talented team to the Electronic Arts family." - Andrew Wilson, CEO of Electronic Arts.
Many have expressed concern over the acquisition of Codemasters by either Take-Two or Electronic Arts. Both companies are known for their microtransactions, and many are afraid of what will come to the beloved Dirt and F1 series games that have a vast following. However, only time will tell to see what will become of Codemasters games in the hands of Electronic Arts!