UPDATE (4:31 PM): The deal between EA and Codemasters has closed, with cash and shares valued at US$1.2 billion (~RM4.9 billion). It’s a bigger sum than what Take-Two was initially offering, but not by much considering the scale. The deal is expected to be completed in the first quarter of 2021.
ORIGINAL STORY (12:02 PM):
In early November, Take-Two Interactive was in acquisition talks with racing game maker Codemasters. It looks like Electronic Arts has stepped in, expressing interest in taking over the UK-based company as well.
Sky News reports that EA is making an offer that is larger than what Take-Two offered Codemasters last month. While it is unknown what the exact figure is, Take-Two’s offer was reportedly at GBP725 million (~RM3.9 billion). The news outlet cites sources that also say that EA was working with bankers at UBS for its offer.
As it is, both companies stand to benefit from acquiring Codemasters. Take-Two has its Rockstar-published Midnight Club series, while EA has Need for Speed. The latter is also arguably the better known of the two franchises. With the NFS series also having had its racing sim phase with the Shift mini series, one could argue that it has more to gain from this potential acquisition.
That being said, it still depends on Codemasters wanting to take the deal. The report also says that Take-Two has yet to make a counteroffer. And finally, the report also makes an interesting note in that EA is roughly twice the size of Take-Two in terms of market capitalisation.
(Source: Sky News, EA via Business Wire)
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