F1 video game developer Codemasters set to be bought by EA for $1.2bn
Formula 1's official video game developer Codemasters is set to be bought by Electronic Arts in a deal worth $1.2 billion
The British-based Codemasters company, which uses Motorsport Games for its Esports activities around the DiRT Rally franchise, had recently been linked with a takeover deal by American videogame publisher Take-Two Interactive Software Inc.
But in a change of direction, Electronic Arts announced on Monday that it had reached an agreement with Codemasters' board for the recommended acquisition of the company.
If the transaction gets the formal go ahead, Codemasters shareholders will be entitled to £6.04 (USD $7.98) in cash for each share. The deal is expected to be completed in the first quarter of next year.
Gerhard Florin, the Chairman of Codemasters, said: "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."
Andrew Wilson, CEO of Electronic Arts, felt that an alliance between his company and Codemasters would help lead them forge a strong alliance to capitalise on a boom in Esports and sim racing.
"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," he said.
"Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment."
As well as producing the official F1 video game, Codemasters also develops DiRT, DiRT Rally, Grid and Project Cars. EA has the Need for Speed franchise and the Real Racing mobile game.
As well as working with Codemasters on its Esports activities, Motorsport Games this year also organised the Le Mans 24 Hours Virtual, the biggest motorsports Esports event in history with a cumulative audience of over 14.2 million viewers. It also publishes the NASCAR HEAT video game franchise.
Fanatec and BMW team up for sim and real-world racing steering wheel
Logitech G923 Wheel Review: Affordable must-have for racing fans
Analysis: How an unlikely tie-up won sim racing's biggest race
An unlikely partnership between LMP1 privateer Rebellion Racing and Williams Formula 1's successful sim racing team yielded victory in the inaugural 24 Hours of Le Mans Virtual. Here's how it triumphed in the biggest sim race ever staged
How poor driving standards ruined IndyCar's golden opportunity
The chaotic end to the virtual Indy 175 might be dismissed as "just a game," but the insulting actions of two IndyCar stars may have serious real-life consequences
Why Leclerc's Virtual GP annihilation deserves great credit
The introduction of Charles Leclerc, Alex Albon, George Russell and Antonio Giovinazzi to Formula 1's Virtual GP last weekend meant it was a step above the franchise's debut two weeks ago. But a dominant performance from Esports newcomer Leclerc stole the show
How the hidden side of being fast has been exposed
'Natural talent' is one of the biggest misnomers going in motorsport, and that is being proven by the way real life racers aren't immediately getting on the pace with the sim racing experts in virtual contests. To change that, they are having to apply the same tools required to be quick in real life
Why F1’s pantomime Virtual GP is fun but unsustainable
F1 Esports' inaugural Virtual Grand Prix last weekend provided brilliant entertainment to those tuning in to watch a mix of F1 drivers and celebrities battle on track, but was a missed opportunity for marketing its own Esports stars. A change of approach is needed if it is to successfully fill the void until the resumption of proper racing
The latest Red Bull exile to return in Esports
Since he was ejected from the programme at the end of 2006, the latest Red Bull junior driver brought back into the fold to race in Formula 1 - in a virtual sense for the inaugural Virtual GP - has had quite the career journey. From ADAC GT Masters and Porsche Supercup to Le Mans and the DTM, here's how a works pro got to relive a long-forgotten dream
Mercedes can be toppled in F1's other title race
Mercedes has not only set new standards in Formula 1, but it's also created a benchmark in Esports. Now its rivals have scrambled to catch up, there's a chance the Brendon Leigh-fronted Mercedes can be stopped
Why World's Fastest Gamer is returning to real-world racing
World's Fastest Gamer is a spiritual successor to the famous GT Academy. After a successful first year, it's returning to the Nissan programme's roots by targeting the real world of racing