Codemasters In Talks With Take-Two Over Possible Sale
No firm offer has gone through, but the two companies are discussing a take over deal.
In a memo to investors, Codemasters confirmed that it's considering a potential sale to Take-Two Interactive, owner of Rockstar Games and 2K Games. Take-Two issued an acquisition proposal to Codemasters that values Codemasters at $973.48 million, a larger number than Codemasters' market cap value of $873.12 million.
The proposal isn't final--details can be amended--and is contingent upon completion of due diligence. If Take-Two goes through with a firm offer, Codemasters' Board has indicated it will unanimously recommend shareholders to accept the deal.
Take-Two also confirmed Codemasters announcement and issued a statement of its own. In it, Take-Two affirms the information laid out in Codemasters' initial memo.
Take-Two states it seeks to acquire Codemasters because it "believes that the combination of Take-Two and Codemasters would bring together two world-class interactive entertainment portfolios, with a highly complementary fit between 2K and Codemasters in the racing genre. 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 has until December 4 to make a firm offer or decide to not make an offer. The deadline can be extended if The Panel on Takeovers and Mergers consents.
Codemasters is known for racing games and has released official Formula 1 titles, Dirt, Grid, and OnRush. In recent years, it also acquired Project Cars dev Slightly Mad Studios and received the license for the World Rally Championship.
Codemasters newly released Dirt 5 on November 6. Richard Wakeling rated it 7/10 in GameSpot's Dirt 5 Review. He commented, "Dirt 5 is a very different game to the previous three entries in Codemasters' off-road racing series ... Codemasters is looking to diversify the series' mainline entries by returning to the arcade spectacle and histrionics of Dirt's early years with Dirt 5."
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