Two game developing and publishing firms agreed on the deal and will unite their forces in esports racing direction. The North-American cybersport giant EA will purchase a British-based Codemasters in early 2021 for about one billion dollars. Login Casino follows the latest esports news and explains the reasons and conditions of the upcoming deal in more detail.
The incredibly growing esports industry continues to shock with amounts of money in it. Sector, which is almost one billion worth, attracts more and more investing attention, while the collaborations and acquisitions inside it are also rather frequent. Login Casino has already informed about the series of Microsoft's purchases of game developing firms, including the expansion of Xbox to the Japanese market.
Now the focus is on the sports simulators. The British-based developer and publisher, Codemasters, which was founded more than 30 years ago, is going to be purchased. Take-Two Interactive wanted to acquire the regarded developer, but their $870 million bid was rejected. However, the $1B+ offer from EA seems to be a more persuasive one.
Why is EA buying Codemasters?
Being the developer and publisher of two famous racing games, Colin McRae Rally and F1, Codemasters can be regarded as the influential market player on the esports racing scene. As these types of games are simulators, EA's desire to add an experienced body to their own team is logical. The North-American gaming giant is a well-known sports simulators' producer and now is going to expand racing direction.
According to the official statements, Codemasters will join EA without cutting the higher-managerial staff, saving even the CEO and CFO positions. The sides agreed to share the experience they've collected to increase the fan base and bring a new era of racing simulators to a wider audience.
The recent price of Codemasters' stocks is about $8 per share. If the deal is agreed on paying the actual price, the overall amount of money EA would spend is about $1.2 billion.
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