Electronic Arts Spends $1.2 Billion in Deal to Acquire Codemasters

Electronic Arts has announced an agreement for the publisher to acquire UK-based developer and publisher Codemasters. Known for racing games such as Dirt 5 and F1 2020, the company has been in the video game industry since 1986. The winning bid was announced earlier today, and EA was not the only company interested. Codemasters was nearly purchased by Take Two, but EA's estimated $1.2 billion bid for the company beat out the rival publisher's offer. The company's racing games should be a strong match for EA's output, which prompted the purchase. In a press release, EA CEO Andrew Wilson discussed the decision.

“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 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. 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."

In the press release, EA laid out the reasons for the purchase, and the benefits to Codemasters. Most notably, Codemasters will stand to benefit from EA's distribution networks, localizations teams, motion capture technology, and more. EA also specifically mentioned the ability to introduce players to Codemasters' franchises through subscription services such as EA Play. That should come as good news to Xbox Game Pass subscribers, as well!

It will be interesting to see what impact the new dynamic will have on EA and Codemasters moving forward. Purchases and mergers are not uncommon in the video game industry, and increasing costs related to development could lead to more of these deals in the new console generation. It certainly seems like the partnership between the two companies will prove to be quite beneficial, and it could also work out for gamers, as well! Only time will tell!

What do you think about EA's purchase of Codemasters? Are you a fan of the company's racing games? Let us know in the comments or share your thoughts directly on Twitter at @Marcdachamp to talk all things gaming!