Take-two Is Looking to Acquire Codemasters for $1 Billion

Take-Two has confirmed that it has made an offer to acquire the UK-based studio Codemasters for $973 million. If completed, the deal will also include the acquisition of Slightly Mad Studios, the developers of Project Cars.

However, Take-Two also stated that the acquisition would take place only if there is a presence of due diligence, and the higher-ups over at Codemasters agree to it.

Codemasters also said in a separate statement that its board members “recommend unanimously that Codemasters’ shareholders accept the Possible Offer,” meaning that its board will recommend shareholders accept the cash-and-stock proposal if Take-Two proceeds with a formal bid.

“Take-Two believes that the combination of Take-Two and Codemasters would bring together two world-class interactive entertainment portfolios, with a highly complementary fit between Take-Two’s 2K publishing label and Codemasters in the racing genre.”
Take-Two

“In addition, Take-Two believes that it can bring benefits to Codemasters’ performance by leveraging Take-Two’s global distribution network and 2K’s core operating expertise in publishing, including live operations, analytics, product development, and brand and performance marketing.”
Take-Two

Take-Two is acquiring Codemasters now! — Codemasters

It generally seems like a good move on Take-Two’s part, seeing how Codemasters is one of the oldest British game developers out there that started all the way back in 1986.

Based in Southam, England, it is best known for its Colin McRae Rally, Operation Flashpoint, Brian Lara, Micro Machines, and of course, the official F1 games.

Not to mention, Codemasters also reported their shares to rise by almost 68% during this year, possibly due to the rise in gaming through the lockdowns.

That said, they are really in a better position than ever before, and it makes sense why Take-Two would want to acquire them. As per the rules in the UK, they have until December 4^th to seal the deal.

However, $973 million is by no means a small amount, even if it may seem a little small when compared to Microsoft acquiring Bethesda, which is why it will undoubtedly be interesting to see how much worth Take-Two can pull with this kind of acquisition.