Earlier this week, it came to light that Take-Two had approached Codemasters to buy the company and bring it under Take-Two’s umbrella of developers. Now, it has been confirmed that the deal is likely to be completed at some point in the first quarter of 2021, and that the purchase will cost Take-Two £726 million/$956 million. The deal has been approved by the boards of directors from both Take-Two and Codemasters.
Take-Two CEO Strauss Zelnick said:
“We are exceedingly pleased to announce this recommended transaction with the Board of Codemasters. Codemasters has a renowned history of creating some of our industry’s most beloved and commercially successful racing franchises, and we believe that their offerings will be highly complementary to our sports portfolio and enhance further our organization’s long-term growth. Moreover, we look forward to welcoming Codemasters’ senior management and development teams into our Take-Two family, and sharing in our vision to deliver the highest quality entertainment experiences and aim to be the most innovative, creative and efficient company in our industry.”
The response was also positive from Codemasters, with Chairman Gerhard Florin saying:
“With a leading position in sports gaming, the Board of Codemasters firmly believes the Company will benefit from Take-Two’s broad capabilities which will help propel the long term success of Codemasters. In recommending this Offer to shareholders, the Board of Codemasters believes it is in the best interests of all stakeholders in the Company.”
The original offer was for £739m/$973m, which equated to £1.20 in cash and £3.65 in Take-Two shares for every Codemasters share, but it looks like Take-Two were able to lower the offer. Should the deal be completed Codemasters will join the likes of 2K, Private Division, and Rockstar Games under Take-Two’s ownership.