EA Is Now One Step Closer To Acquiring Codemasters
Codemasters' directors have agreed they will vote to approve the $1.2 billion sale.
EA's acquisition of racing game studio Codemasters is one step closer to becoming a reality. VideoGamesChronicle reports that Codemasters' directors have agreed that they will vote to approve the $1.2 billion deal, even if a higher bid comes in later.
Directors CEO Frank Sagnier, chief financial office Rashid Varachia, and executive director Ian Bell--who collectively control 4.34% of Codemasters--have all agreed to vote to close the deal.
It will be finalized during a meeting scheduled for February 3, 2021. Enough shareholders will also need to support the acquisition plan. The approval from the directors this week comes after the Codemasters board unanimously recommended for its shareholders to agree to the deal.
The agreement is "binding," VGC reported, which means they must agree to it even if a higher bid comes in. The deal can still fall apart, however, if EA rescinds its bid or some other element of the terms are lapsed.
If everything goes to plan and the shareholders approve the sale, the courts will sanction the sale during a February 16 meeting.
Rockstar and 2K Games parent company Take-Two was originally lined up to buy Codemasters for $994 million before EA came in with a higher bid.
This is not EA's first acquisition of a racing game studio, as the company bought Burnout developer Criterion Games in 2004, putting it to work on Need for Speed games. More recently, Criterion contributed to the development of Battlefield V and Star Wars: Battlefront II, with EA's other studio, EA Gothenburg, handling the Need for Speed series. That has changed, however, as Criterion is back in the driver's seat for the Need for Speed franchise.
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