Electronic Arts (EA) is set to acquire popular British video game development company Codemasters for $1.2 billion. The deal is expected to increase EA’s position in the racing game genre and expand its global reach. Under the agreement, EA will purchase all outstanding shares of Codemasters for a cash consideration of $7.98 per share. The acquisition is due to be completed in Q1 2021, subject to approval by Codemasters’ shareholders and regulatory authorities. The acquisition is expected to lead to cost savings and operational efficiencies, allowing both companies to reinvest in their products and services.
Electronic Arts Acquires Codemasters in $1.2 Billion Deal
Electronic Arts (EA), the popular video game company, has agreed to purchase Codemasters, a British video game development company, in a $1.2 billion deal. This acquisition is expected to bolster EA’s position in the racing game genre and increase its global reach.
The Deal
The acquisition deal was revealed in a joint statement by EA and Codemasters on December 13, 2020. Under the terms of the deal, EA will acquire all outstanding shares of Codemasters for a cash consideration of $7.98 per share, valuing the British gaming company at $1.2 billion. The acquisition is expected to be completed in Q1 2021, subject to approval by Codemasters’ shareholders and regulatory authorities.
The Benefits
EAs acquisition of Codemasters is expected to have several benefits for both companies. For EA, the acquisition will expand its racing game portfolio and enable it to offer even more realistic gaming experiences. For Codemasters, the deal provides access to EA’s marketing and distribution channels, enabling the company to reach a wider audience and increase its revenue potential. Additionally, the combination of the two companies is expected to lead to cost savings and operational efficiencies, which will allow both companies to reinvest in their products and services.
Industry Reaction
The acquisition deal has been met with mixed reactions from the gaming industry. Some industry experts believe that the deal will enable EA to solidify its position as a leader in the racing game genre and expand its reach into new markets, while others have expressed concern over the acquisition’s potential impact on Codemasters’ independence and creative vision.
The Future
Despite the mixed reactions, the acquisition of Codemasters is likely to be a significant development in the video game industry. EA’s acquisition of the British gaming company is expected to bolster EA’s position in the racing game genre and increase its global reach. The deal is also expected to lead to cost savings and operational efficiencies for both companies, which will allow them to reinvest in their products and services.