Codemasters buyout: Will EA’s $1.2 purchase billion plans go ahead?
EA has announced intentions to purchase Codemasters for $1.2 billion, but the potential bidding war may not be over just yet.
In November, Take-Two Interactive announced plans to purchase Codemasters for $994 million. All seemed to be set in stone as both companies appeared eager to move forward with the deal.
Today, though, Electronic Arts (better known as EA) announced an offer of $1.2 billion for Codemasters, complicating what otherwise appeared to be a straightforward purchase.
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Why EA is trying to buy Codemasters?
Codemasters is notable for its portfolio of AAA racing and sports games, such as the recently release Dirt 5. The studio is among the biggest names in racing games.
EA to buy Dirt Rally-maker Codemasters for £1bn
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Games giant Electronic Arts is set to acquire the British video-game-maker Codemasters, in a deal worth an estimated $1.2bn (£1bn).
Codemasters is best known for its racing games, including the Dirt Rally series and Formula 1 licences. EA owns the global franchise to Need for Speed.
Codemasters had said it would recommend its shareholders accept an earlier offer, by one of EA s main rivals.
New-York- based Take-Two Interactive had offered a package worth $973m.
Codemasters senior management team, including the chief executive and chief financial officer, would remain with the company during the transition to EA, with the deal expected to be completed by the end of March 2021, it said.
Takeover: Why the Codemasters share price just surged 20%
More on:
The
Codemasters(LSE:CDM) share price has been rising steadily this year, but it soared 20% in a single day on Monday.
The
AIM-listed video game developer has had a stellar 2020. Shareholders have seen a brilliant 115% return this year, despite everything that has happened in the world.
US$12.3 TRILLION out of thin air…
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So what specifically happened to light a rocket under the Codemasters share price?
Codemasters racing ahead
The share price jumped 108p, from 532p to 640p, in little under an hour on Monday 14 December. It’s a stunning surge for the racing-focused video game publisher.
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Electronic Arts to buy UK s Codemasters in US$1.2 billion deal Toggle share menu
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Electronic Arts to buy UK s Codemasters in US$1.2 billion deal Computer games firm Electronic Arts said on Monday it had reached an agreement to buy Codemasters in a deal worth US$1.2 billion, trumping an earlier agreement between the British company and rival Take-Two Interactive Software.
FILE PHOTO: An Electronic Arts office building is shown in Los Angeles, California, U.S., July 27, 2020. REUTERS/Mike Blake/File Photo
14 Dec 2020 03:30PM Share this content
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REUTERS: Computer games firm Electronic Arts said on Monday it had reached an agreement to buy Codemasters in a deal worth US$1.2 billion, trumping an earlier agreement between the British company and rival Take-Two Interactive Software.