Take-Two Interactive has finalized an agreement to purchase UK-based developer and publisher Codemasters. The transaction is due to take place in the first quarter of the 2021 calendar year.
What does Take-Two Interactive purchasing Codemasters mean?
Last week, Take-Two declared its intention to purchase Codemasters, with the latter intending to "unanimously recommend" sale of the company to Take-Two. Today, the two companies announced that they'd reached an agreement. The transaction values Codemasters shares at $6.39 each and states that Codemasters has an implied equity value of $994 million. This means Take-Two will add Codemasters to a stable that also includes publisher 2K and legendary Grand Theft Auto studio Rockstar.
Take-Two CEO Strauss Zelnick says the company is "exceedingly pleased" to acquire Codemasters. Zelnick says Codemasters' lineup will be "highly complementary" to Take-Two's "sports portfolio". Take-Two's sports franchises include NBA 2K and MLB, while Codemasters is perhaps best known for its work on the official Formula One videogames. For Codemasters' part, chairman Gerhard Florin says the studio will benefit from Take-Two's "broad capabilities", which will help propel long-term success for the British developer.
So who are Take-Two and Codemasters?
Take-Two Interactive is a gaming conglomerate based in New York. Its two most famous publishing labels are Grand Theft Auto and Red Dead Redemption studio Rockstar and BioShock and Borderlands publisher 2K. Codemasters is a British developer and publisher based in Stratford-on-Avon in the UK. Its key products include official game adaptations of Formula One, as well as other racing titles like Project CARS (following its acquisition of Slightly Mad Studios last year).
It's not yet clear what the first fruits of this deal will be, nor whether it will affect anything Codemasters currently has in the pipeline. This deal will, however, almost certainly raise Take-Two's profile as a rival to EA for the sporting game crown. We'll bring you more on this as we get it.
What would you like to see happen as a result of the Take-Two and Codemasters deal? Let us know in the comments below!
