EA acquisition of Codemasters approved in recent shareholder vote
Codemasters shareholders voted in favor of allowing an Electronic Arts takeover of the racing game developer, allowing the deal to move forward.
A recent vote that took place among Codemasters shareholders has resulted in overwhelming approval for a deal in which Electronic Arts would fully take over the studio. Codemasters’ ownership has been in limbo between multiple major gaming companies for some time, but it would appear that the recent vote will allow EA to move forward with the acquisition of Codemasters.
Codemasters held a remote vote fairly recently, approving the takeover, as reported by Video Games Chronicle. Of the 76 shareholders who voted, 63 cast their vote in approval of the acquisition, representing approximately 99% of the shares for the studio. With the vote, Electronic Arts and Codemasters can now move forward with the deal, which is now set for a February 16, 2021 court date for legal sanctioning. Following the court hearing, Codemasters shares will be suspended and then canceled from trade on the London Stock Exchange in the days following. Valued at an estimated $1.2 billion, the Codemasters acquisition by EA will supposedly be finalized before the end of the 2021’s first fiscal quarter on March 31.
Electronic Arts’ move forward with the Codemasters deal follows a somewhat rough forecast from its Q3 2021 earnings report in which the company gave weak guidance for Q4 2021, resulting in a drop in the company’s stock price at the time. Nonethless, EA remains confident in its acquisition of Codemasters.
“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,” EA CEO Andrew Wilson said of the deal.
EA is also capitalizing after Take-Two Interactive teased and then withdrew its own deal to acquire the racing game developer. Nonetheless, mid-February is looking like it will see Codemasters pretty much fully change hands as Electronic Arts continues with the deal. Stay tuned as we continue to follow this story for further updates.
TJ Denzer posted a new article, EA acquisition of Codemasters approved in recent shareholder vote