On Dec. 14th, 2020, Electronic Arts (NASDAQ: EA) announced its intention to buy United Kingdom gaming studio Codemasters (LSE: CDM) for $1.25 billion. EA's bid is at a 14% premium to the price Take-Two Interactive (NASDAQ: TTWO) offered in November. The deal is not yet finalized, but as of now, it looks like EA is the front-runner to acquire the studio. Here's what investors need to know about the racing-focused gaming company.
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Codemasters is a 30-year-old British video game developer with a specialty in the racing genre. DiRT , GRID , Project Cars , and Formula One are some of its top franchises. None of these are household brands, and they don't have the name recognition of something like a FIFA or Call of Duty , but the titles are popular with racing fans of all types. For example, DiRT Rally 2.0 , the company's rally car game, just hit 9 million users.
For further details see:
Why EA Wants to Buy This Racing Game Maker for $1.2 Billion