EA buys Codemasters for 1.2 Billion Dollar

[Deleted User]

Electronic Arts announced that it has reached an agreement with the Board of Codemasters for the recommended acquisition of Codemasters, the UK-based game developer and publisher.

Today, Electronic Arts Inc. (NASDAQ: EA) announced that it has reached an agreement with the Board of Codemasters for the recommended acquisition of Codemasters, the UK-based game developer and publisher. In the transaction, Codemasters' shareholders will be entitled to receive 604 pence (approximately US$7.98*) in cash for each ordinary share of Codemasters with an implied enterprise value of US$1.2 billion*. The acquisition is anticipated to be completed in the first quarter of calendar 2021.

“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,” said Gerhard Florin, the Chairman of Codemasters.

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

Source:https://ir.ea.com/press-releases/pr...f-Codemasters-Group-Holdings-PLC/default.aspx

 

[FAST6191]

I would not have placed Codemasters as being worth that much these days, or even back when they were especially relevant.

I am also wondering what EA will ruin if there is not a lot to go back and ruin.

 

[cearp]

someone's having chippy tea with extra chips tonight!

 

[hippy dave]

Codemasters was a favourite from childhood, IDK if they're much relevant to me any more tho. I'm guessing EA aren't buying them with the intent of putting out more Dizzy games.

 

[Bladexdsl]

PRESS F

 

[cearp]

I'm guessing EA aren't buying them with the intent of putting out more Dizzy games.

or a micromachines n64 remaster. but we can hope

 

[FAST6191]

or a micromachines n64 remaster. but we can hope

Did you not see their attempt at resurrecting the series the other year?

...
The transition to 3d games with the PS1 was less brutal to 16 bit staples.

Though recalling that (the horror) makes me realise what EA saw in them, that being kindred spirits.

 

[cearp]

Did you not see their attempt at resurrecting the series the other year?

no, I will gingerly check it out on youtube...!

-edit. (couldn't really find anything?)

 

[Deleted member 668561]

Infinite money : TZZZXV

 

[AmandaRose]

I'm guessing EA aren't buying them with the intent of putting out more Dizzy games.

The Dizzy games are owned by the Oliver Twins not Codemasters. They just realesed a remake of fast food dizzy for the Switch last month lol.

https://www.nintendolife.com/news/2..._its_included_free_with_fuze4_nintendo_switch

They have also realesed another few Dizzy games over the last 5 years or so.

In 2015 the Oliver Twins released Wonderland Dizzy, which they had written 22 years earlier but had forgotten about. The game was originally made for the NES, but released online and free to play. In 2016, they released a second lost Dizzy game, Mystery World Dizzy, which was originally scheduled for release on the Nintendo in 1993. In May 2017 the twins announced they would be working on a new Dizzy game, their first for over 20 years. In a fun video for the ZX Spectrum Next Kickstarter campaign they revealed the game would be inspired by the classic The Wonderful Wizard of Oz by author L. Frank Baum, and would be called Wonderful Dizzy.

 

[MikaDubbz]

I would not have placed Codemasters as being worth that much these days, or even back when they were especially relevant.

I am also wondering what EA will ruin if there is not a lot to go back and ruin.

Yeah, looking over their games over the years, I'm not seeing anything in there that would prompt the likes of EA to purchase the company for that much, let alone to have had a bidding war over the company with TakeTwo.

 

[FAST6191]

Yeah, looking over their games over the years, I'm not seeing anything in there that would prompt the likes of EA to purchase the company for that much, let alone to have had a bidding war over the company with TakeTwo.

I am even more confused now
2019 article when I went looking for sales of F1 game (F1 is fairly popular as these things go and they have the rights)
https://www.pcgamesinsider.biz/news/69781/617-of-codemasters-h1-201920-sales-were-digital/
Revenues of about 40 million GBP and just over half that in the bank. Where 1.2 billion appeared from I have no idea. I know that is a year old but something to justify that kind of growth from a mature company I would like to think crossed my eye (they have not exactly had a Fortnite sized hit or anything)

As most others mentioned back catalogue is fairly considerable by virtue of them being long standing. Their other driving franchises (Dirt, formerly Colin MacRae, and TOCA which these days go by Grid) don't exactly set the world on fire either.

They brought back operation flashpoint in a "operation flashpoint in name only" back on the 360 even if I am the rare liked both the very original PC effort and actually really quite liked the first 360 one (unforgiving as you like but it is a mid-long range tactical game which was quite the contrast from the COD of the day, also can entirely see where the "in name only" set come from here).

Their length of existence (EA is involved so start the timer and all that) means they have a few more -- James Pond Robocod was published by them on the DS, it originally being known from the amiga and megadrive, so I am not sure what goes there, Second Sight I guess is even further back but I am not seeing that bump the price sky high and the micro machines* thing could be a nice little retro throwback if they got it right (though they seem to have been trying that since the 16 bit era and have yet to get it right).

I am going to have to dig deeper.

*for those unfamiliar micro machines was playground leading toy back in the late 80s and 90s. As the micro part implies they were usually pictured racing around a house at the size they are so there is that. The games made for the 16 bit era megadrive/genesis were often considered among the better racing games of the era (for the megadrive at least then mix and match numbers for sonic, columns, streets of rage, golden axe and then micro machines was the and generally seen game library) the last hurrah of the aerial view racer in some cases. I will also pick a fight with those that reckon the N64 and PS1 efforts deserve to be spoken of in the same breath.

 

[Pipistrele]

Yeah, looking over their games over the years, I'm not seeing anything in there that would prompt the likes of EA to purchase the company for that much, let alone to have had a bidding war over the company with TakeTwo.

DiRT is one of the big three racing series at the moment (along with Gran Turismo and Forza), and they also have both license and chops to make competent F1 games. It's most likely that EA wants to expand their Sports division to racing sims, and Codemasters is a no-brainer purchase for something like this.