Electronic Arts hijacks Take-Two’s £725m takeover of Codemasters

US video games giant Electronic Arts (EA) is set to acquire the Warwickshire-based rival Codemasters, in a deal worth more than £1bn.

The news follows an announcement last month that New-York- based Take-Two Interactive had offered a package worth between £712m-740m for Codemasters.

Codemasters’ senior management team, including the CEO, will remain with the company during the transition to EA.

Following legal and acquisition formatlities, the deal expected to be completed by the end of March 2021.

Gerhard Florin, the Chairman of Codemasters, said: “Electronic Arts and Codemasters have a shared ambition to lead the video game racing category. The Board of Codemasters firmly believes the company would benefit from EA’s knowledge, resources and extensive global scale – both overall and specifically within the racing sector.

“We feel this union would provide an exciting and prosperous future for Codemasters, allowing our teams to create, launch and service bigger and better games to an extremely passionate audience.”

Andrew Wilson, CEO of Electronic Arts, said: “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.”