Take-Two Interactive Targeting Purchase of Codemasters

Take-Two Interactive Codemasters purchase cover

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Take-Two Interactive Targeting Purchase of Codemasters

November 6, 2020

By: Robert N. Adams

 
 

Take-Two Interactive is intending to purchase racing game publisher Codemasters — a partnership that would bring "two world-class interactive entertainment portfolios" together under one umbrella.

Gaming publisher Take-Two Interactive has a number of popular video games in its portfolio, the most prominent of which is undeniably GTA 5 from its subsidiary Rockstar Games. Rockstar has also had success with Red Dead Redemption 2, although this is far from the publisher's only successful company — it also counts 2K among its many subsidiaries. Now, a new report indicates that it may soon seek to purchase Codemasters and expand its massive catalog of games to the next level.

Take-Two Interactive Codemasters purchase slice

Will Take-Two Interactive Actually Buy Codemasters?

"Take-Two believes that it can bring benefits to Codemasters performance by leveraging Take-Two global distribution and 2K’s core operating expertise in publishing, including, live operations, analytics, product development, and brand and performance marketing," read a statement given to VGC by a company representative.

 
 

While there is certainly interest from both Take-Two Interactive and Codemasters, buying another company isn't as easy as going down to the grocery store to get a gallon of milk. A "due diligence" process must be completed first — this would analyze the financial health and obligations of Codemasters to help Take-Two determine if purchasing the company is a sensible decision.

There is notable enthusiasm from UK-based Codemasters, a company that has seen its own fair share of success with the Dirt and Grid franchises in the modern era. The company dates back to the micro-computer era of the United Kingdom in the 80s, and started with budget games before more recently becoming racing specialists. A report reviewed by VGC notes that the Codemasters board would unanimously recommend a sale should the results of the due diligence process satisfy Take-Two's stakeholders.

The deal was later confirmed in a press release sent out earlier today which included some more specific details. The first steps in this purchase were made in mid-October 2020. Take-Two Interactive is required to announce whether or not it will purchase Codemasters no later than December 4, 2020, at 12:00 PM Eastern, although this deadline can be extended.

Currently, Codemasters shares are being valued at $6.40 apiece; $1.58 would be paid out in cash per share and $4.82 would be paid out in Take-Two stock per share. As Take-Two Interactive would be purchasing all of the Codemasters shares as part of this deal, it values Codemasters at well over $970 million.

A purchase of Codemasters would expand Take-Two's catalog to include a much wider library of racing games. While GTA 5 certainly has a lot of car-centric content, the racing genre isn't one of Take-Two Interactive's strong suits in recent years; an acquisition of Codemasters would certainly broaden its reach to new audiences.

This story has been updated with new information in a press release from Take-Two Interactive.

 
 

Do you think Take-Two Interactive will actually buy Codemasters or will the deal fall through? What's your favorite Codemasters game to date? Let us know in the comments below!

A photograph of Robert N Adams
Senior Writer

I've had a controller in my hand since I was 4 and I haven't stopped gaming since. CCGs, Tabletop Games, Pen & Paper RPGs - I've tried a whole bunch of stuff over the years and I'm always looking to try more!

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