EA Reminds Us It’s Richer Than God By Acquiring Codemasters for $1.2 Billion

The company now owns even more racing series.

Electronic Arts is making a new acquisition today, as the publisher announced it is purchasing Codemasters, the publisher and developer behind racing games like the Formula One and Dirt series. All to the tune of $1.2 billion.

In the press release issued by EA, the company says adding Codemasters to its stable of developers will give it a stronger foothold in the racing game markets. Not that EA is lacking on that side, as it already owns the Need for Speed and Burnout franchises, but now it will own several more like Formula One, Dirt, Grid, and Project Cars. The company included a bulleted list of its thinking with the purchase, and how it believes it will be beneficial for both companies.

  • Electronic Arts believes the combination of EA and Codemasters will enable further growth and success for Codemasters and EA’s popular and innovative racing franchises.
  • Bringing together the combined expertise and talent from Codemasters’ critically-acclaimed sports and racing franchises Formula One, DiRT, DiRT Rally, Grid and Project Cars with EA’s global Need for Speed franchise, fan-favorite Real Racing mobile game and EA SPORTS brands will enable our teams to innovate further, and meaningfully increase the delivery of content and experiences to a growing, global audience for racing entertainment.
  • Codemasters’ deep creative talent which has produced high-quality racing games for many years, including the Formula One franchise that continues to deliver great entertainment for F1’s growing fan base.
  • EA believes it can help accelerate Codemasters’ performance by leveraging EA’s deep expertise in live services operations, game analytics and technology. In addition, EA’s central services teams across development technology, art & motion capture, quality verification, compliance, and localization will all be resources available to Codemasters.
  • EA’s global publishing, marketing and game development support capabilities will also strengthen Codemasters’ existing capabilities, expanding the addressable market for Codemasters’ franchises.
  • The combination of Codemasters and Electronic Arts will enable the development and delivery of a market-leading portfolio of creative and exciting racing games and content to more platforms and more players around the world.
  • The union also creates ongoing and expanded ways for players to engage with the combined portfolio of sports and racing games through EA’s industry-leading multi-platform subscription services.
  • Bringing together Codemasters and Electronic Arts also delivers compelling financial benefit to the combined group. The acquisition is expected to grow net bookings and underlying profitability.
  • Frank Sagnier, Chief Executive Officer of Codemasters, and Rashid Varachia, Chief Financial Officer of Codemasters, along with the senior executive management team of Codemasters intend to remain with Codemasters following completion of the acquisition and will continue to lead the Codemasters business within EA’s organization.

News of this acquisition follows reports that Take Two was also in talks to buy Codemasters, but it looks like EA outbid it. Who can compete with $1.2 billion dollars?

In other news:

Codemasters will be joining the likes of Bioware, Respawn Entertainment, and DICE as studios acquired by Electronic Arts. Between primary studios and all their subsidiaries, EA owns over 20 developers spanning the globe.

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Kenneth Shepard

Kenneth is a Staff Writer at Fanbyte. He still periodically cries about the Mass Effect trilogy years after it concluded.

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