Electronic Arts Has Snatched Codemasters From Take-Two Interactive With $1.2 Billion Offer

In a surprise move, Electronic Arts came out of nowhere over the weekend to snatch Codemasters from Take-Two Interactive with an offer that the British studio could not refuse.

It was only a month ago that Take-Two confirmed that it was set to acquire Codemasters for $870 million and that the deal would finalized by Q1 2021. Late on Sunday, reports emerged that EA had made a lucrative offer of $1.2 billion, blocking Take-Two’s purchase. Both Codemasters and EA confirmed the news this morning.

EA’s rationale for the purchase is as follows:

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.

Codemasters added that EA, which has several high-profile racing franchises in its portfolio, has the knowledge and resources to lead the racing game genre. The studio’s board of directors believes that joining forces with EA is beneficial for both parties.

Take-Two has not commented on the news.