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[Craig of War]

Codemasters Agrees to $1.2 Billion Counterbid From EA - BNN Bloomberg

Codemasters Group Holdings Plc has agreed to a $1.2 billion bid from Electronic Arts Inc., which topped a $956 million offer from Take-Two Interactive Software Inc.

www.bnnbloomberg.ca

"Codemasters Group Holdings Plc has agreed to a $1.2 billion bid from Electronic Arts Inc., which topped a $956 million offer from Take-Two Interactive Software Inc.

The London-traded producer of racing video games said its shareholders will receive 604 pence in cash for each ordinary share of Codemasters, according to a statement on Monday. The rival offer could spark a bidding war for the maker of the popular Formula 1 racing franchise, after video game makers have soared in value with consumers stuck at home due to the pandemic.

Take-Two first revealed a a cash-and-stock deal agreement for Codemasters in November, valuing the U.K. firm at about 528 pence per share based on Take-Two’s last closing price. The EA deal values Codemasters at about 14.4% higher than Take-Two’s offer.

Take-Two’s bid already faced investor opposition. The cash and stock proposal’s value has fluctuated over time, and as of Friday’s close it translated into more than a 1.1% discount to Codemasters’s share price. Columbia Threadneedle Investments has argued the takeover doesn’t value Codemasters as high as its listed peers.

“To strengthen the position that Codemasters has built within the racing category, there is an increasing necessity for additional investment in both resources and skills across its portfolio,” Codemasters said in a statement Monday.

 

[Stuart360]

This makes the Zenimax deal seem like a steal.
I really dont get this price. They only make racing games, and they almost always underperform sales wise (even though i buy most of them lol).

 

[Mentat02]

f1 2020 is one of the best f1 games in a long time. downforce sticks the car to the pavement, dirty air affects the cars behind you, DRS isn't really overpowered, ERS system still needs work and tire management is good. There are still things to improve but not under EA.

 

[Deleted member 801069]

Really shows you how much of a bargain MS got Zenimax for

 

[Hawking Radiation]

F U C K

FUCKITY F U C K!!!!!!

 

[gradient]

RiP Codemasters

 

[GHG]

Fucks sake.

 

[Hudo]

How the fuck are Codemasters worth a billion dollars? They make solid to excellent racing games but a billion dollars? Maybe that Operation Flashpoint IP is worth more than I expected.

 

[kretos]

Can't wait for F1 ultimate team

 

[Yoboman]

Buy Criterion for $48 million - creators of arguably the best arcade racer of all time

Kill them off

Buy Codemasters for $1.2 billion

 

[Agnostic2020]

Non of their games sell great so I m not sure 1.2 billion was a good investment

 

[Mokus]

This is bad! Really bad.


RIP Codemasters.

 

[T_Exige]

*Gulf car livery loot box*

 

[Neko Mimi Mode]

 

[Hugare]

... Kinda overpriced, EA

But now that you bought them, put them to work on the next NFS game

Enough of Ghost developed NFS games

 

[Max_Po]

They had to pay extra to outbid Rokcstar ...

 

[jigglet]

EA buys a developer that has solid but not earth shattering sales.

Said developer will probably post solid but not earth shattering sales.

EA will then shut them down for solid but not earth shattering sales.

The logic is lost on me.

 

[onesvenus]

The rival offer could spark a bidding war for the maker of the popular Formula 1 racing franchise, after video game makers have soared in value with consumers stuck at home due to the pandemic.

Does this mean Take two can still outbid them? The news title makes it sound like it's a done deal.

 

[farmerboy]

Jesus. Asked this in another thread but didn't get any feedback; with Codemasters getting 1.2 billion, what would a studio like Naughty Dog be worth?

 

[jufonuk]

Shit micro machines is worth tonnes. I hope to see these games on Nintendo platforms. Because EA care for us so much.

 

[M1chl]

This makes the Zenimax deal seem like a steal.
I really dont get this price. They only make racing games, and they almost always underperform sales wise (even though i buy most of them lol).

What about IPs which they have, I kbow that have something like Operation Flashpoint...

 

[Aggelos]

 

[Gabbar Singh]

Codemasters games will now also come to GamePass via EA

 

[Warablo]

EA wants that racing game monopoly.

 

[Bullet Club]

EA can now make an open world Dizzy game.

 

[NeoGiffer]

 

[kyussman]

Perhaps the cars will now handle properly in NFS...that would be nice!

 

[pasterpl]

does this mean that we can expect codemasters games on EA play (and by extension on gamepass)?

 

[Stuart360]

What about IPs which they have, I kbow that have something like Operation Flashpoint...

And how much is Operation Flashpoint worth?, same with Overlord, games that 80% of gamers probably dont even remember.
Besides they said a few years ago that they were dropping none racing games and just concentrating on racing games going forward. Of course EA could farm the IP's off to other teams.

 

[ZywyPL]

Sad news, I can already see the quality of their games going all the way downhill due to forced, stiff release dates, and the studio getting shut down in consequence.

 

[Orta]

Fuck me, the Bethesda deal for MS was an absolute steal in comparison.

Wtf does Codemasters even make nowadays apart from coma-inducing Rally games?

Anyway, EA, we all know how it'll end it up....

 

[Klik]

Rip dirt rally 3.0

 

[Shmunter]

Bad news

 

[baphomet]

what a waste of money.

 

[UnNamed]

 

[YeulEmeralda]

Operation flashpoint? Now there's a name I haven't heard in a long while.

 

[LisaMariaMartin]

Jesus. Asked this in another thread but didn't get any feedback; with Codemasters getting 1.2 billion, what would a studio like Naughty Dog be worth?

Naughty Dog has no legacy IP and the only reason this is over 1B$ is because EA had to pay premium to remove Take Two from the deal. They probably paid whatever the breakup fee was for Take Two and Codemasters.

 

[cormack12]

How the fuck are Codemasters worth a billion dollars? They make solid to excellent racing games but a billion dollars? Maybe that Operation Flashpoint IP is worth more than I expected.

I would like to echo this. wtf. They must have some internal tech to make R* and EA to make an acquisition, but the strength of their ips is not amazing imo

 

[acm2000]

so $100m for their engine and software, $100m for their studios, $1b for the Dizzy IP.

 

[v_iHuGi]

1.2B for a Racing Studio? Sony bought a Anime thing for the same price

 

[bitbydeath]

Maybe they want Evolution studios to work on the Burnout series?

 

[Nezzeroth]

That seems really expensive. Sony bought Insomniac Games for less that a fifth of that amount.

Not sure why EA wants them, it's not like their games sell crazy amounts.

 

[Valued Gamer]

There is going to be a massive rush to buy up developers and publishers.
That Zenimax sale spooked the market.

 

[Stuart360]

Man i have to say it hurts a bit to see one of the last remaining names from the early golden years of gaming get gobbled up like this, and probably shut down eventually. I will always have memories of their 8bit/16bit games, and Amstrad CPC464 output which was huge.

Also i just read on Google than they have 700 employees. Fuck knows how they have lasted this long when the likes of Grid and Dirt games have underperformed in recent years, and F1 sells decent but miles away from most none racing AAA games.

 

[ScarletSpider]

I can’t say I’ve ever played a Codemasters game. I’m unopposed, I just don’t think I have. Seems like a lot of money, especially when as someone else already mentioned they killed off Criterion after paying 40-something million for them

 

[Bullet Club]

How the fuck are Codemasters worth a billion dollars?

They own Sensible World Of Soccer. Release a new version on the Amiga and EA will get that billion dollars back. Maybe.

 

[outsida]

Not like this....

 

[SoggyBiscuit]

I really don't understand this investment. As pointed out by others, they've never set the world alight with their sales. Maybe EA just wanted that F1 licence real bad.

Codies top brass laughing all the way to the bank with this sale.

 

[thelastword]

PapEA is going to what it always does.....It was good knowing Codemasters. I loved the original Grid and Dirt 2 was a classic......I guess it's over now....

 

[Compsiox]

EA will close them down once they realize how awful this investment was.