Video games, especially sports games, have surged in popularity during the coronavirus pandemic, as matches were cancelled or played behind closed doors. “Our industry is growing, the racing category is growing, and together we will be positioned to lead in a new era of racing entertainment,” said Andrew Wilson, chief executive of EA.

Some Codemasters shareholders had been unhappy at the board recommending New York-based Take Two’s offer at only a relatively modest premium that they felt undervalued the company.ĮA, which has sports franchises including Fifa and Madden NFL, said that a deal with Codemasters, which would be the biggest in the company’s history, will create a giant in the racing simulation category. “I think Take-Two Interactive can counter with a higher offer due to the long-term strategic value of Codemasters’ IP and technology.” “In some respects, EA’s move feels defensive, because they are already under attack from Take-Two and many of their franchises are becoming second rate relative to leaders,” said Neil Campling, an analyst at Mirabaud. Analysts believe that Take-Two will table an improved offer for Codemasters.

Take-Two, which is roughly half the size of EA’s $40bn (£30bn) market value, said that it is “considering its position in relation to Codemasters and a further announcement will be made when appropriate”.

Shares in Codemasters surged more than 20% in early trading on Monday, climbing to 642p, well above EA’s 604p per share offer, as investors sensed a bidding war. The board of Codemasters, which is headquartered in the small market town of Southam in Warwickshire, has unanimously recommended that shareholders accept EA’s offer and scrapped a proposed £759m cash-and-stock deal with rival Take-Two Interactive announced last month. British video games maker Codemasters has become the focus of a £1bn bidding war after accepting an offer from California-based Electronic Arts, scuppering a previously planned deal with US rival Take-Two Interactive, maker of franchises including Grand Theft Auto.ĮA, the maker of titles including Battlefield and The Sims, has tabled a £945m offer for Codemasters, which is best known for its racing simulators including the Formula One series.

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