F1's official video game developer, Codemasters, is set to be bought by EA in a deal worth $1.2B. British-based Codemasters, "which uses Motorsport Games for its Esports activities around the DiRT Rally franchise," had recently been linked with a takeover deal by American video game publisher Take-Two. But in a change of direction, EA announced on Monday that it had "reached an agreement with Codemasters' board for the recommended acquisition of the company." The deal is "expected to be completed in the first quarter of next year." As well as producing the official F1 video game, Codemasters "also develops DiRT, DiRT Rally, Grid and Project Cars" (MOTORSPORT, 12/14).
Take-Two’s offer put Codemasters’ valuation at approximately $980M. Codemasters’ current CEO, Frank Sagnier, and CFO Rashid Varachia, along with the company’s senior exec management team, "intend to remain with Codemasters in their positions following completion of the acquisition" (THE ESPORTS OBSERVER, 12/14).
EA’s acquisition of Codemasters could see it "wrest control of the racing video game genre." EA, "of course, owns the Need for Speed franchise," so the Codemasters addition would give it "further control over a huge chunk of the racing game market." EA's main competitors in racing would be Sony’s Gran Turismo and Microsoft’s Forza series, both of which are exclusive to their publishers’ respective platforms (THE VERGE, 12/14).
