UPDATED – Take-Two announces lapse of offer to acquire Codemasters

UPDATE (14.1.2021): Take-Two announces lapse of offer to acquire Codemasters

The US-based game company Take-Two entered the race with Electronic Arts to acquire Codemasters, which became popular with games such as Formula 1. The company announced lapse of offer after Electronic Arts’ $ 1.2 billion bid.

Take-Two and Electronic Arts entered the race for Codemasters, famous for their Formula 1 and Dirt series games, and finally EA was shown as the closest company to buy Codemasters with a $ 1.2 billion bid. Electronic Arts and Codemasters reached a preliminary agreement. Take-Two Interactive had confirmed that it is in talks to acquire UK-based game publisher and developer Codemasters for $973.8 million. 

Take-Two quit the race, stating that they would withdraw their offer after Electronic Arts offered $ 1.2 billion. In its statement, the company stated that they are open to buy other companies and said: “Take-Two remains a highly disciplined organization and, with its strong balance sheet, will continue to pursue selectively organic and inorganic opportunities that are designed to enhance the Company’s long-term growth and deliver results to its shareholders.”

With Take-Two leaving the race, Codemasters seems to be left to Electronic Arts. The company announced that the acquisition will be closed in the first quarter of 2021, as previously stated.

Original News (November 6, 2020)

Take-Two Interactive, the publisher of Grand Theft Auto and Borderlands, hasn’t completed a deal yet, but it has made an offer. The confirmation of the offer first came from the Board of Codemasters and then Take-Two released a statement that confirms the announcement of Codemasters.  

Take-Two Interactive offered $6.40 a share to acquire Codemasters, in both cash and stock. The deal is contingent on due diligence, approval by the board, and other approvals.

According to Reuters, Codemasters’ shares were up 8.6% to 470 pence at 1640 GMT, following the announcement. Take-Two’s shares were up 2.9%.

“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.” 

“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.”

In August 2020, New York based Take-Two acquired mobile game developer Playdots for $192 million comprising $90 million in cash and $102 million in stock. 

Written by Jordan Bevan


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