Take-Two Interactive in talks to acquire ‘Dirt 5’ developer Codemasters

A possible offer has been made, but is pending conditional requirements

Take-Two Interactive has announced its intentions to acquire U.K.-based developer Codemasters.

The announcement was made via a press release on Friday, November 6, and confirms that Take-Two has made a “possible offer” proposal to “acquire the entire issued share capital” of Codemasters, which has been valued at 739.2million pounds (US$973.01million), according to a Reuters report.

Per the press release, the offer pends the “completion of confirmatory due diligence and the recommendation of the Board of Codemasters”, and notes that “Take-Two reserves the right to waive any of these requirements”.

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While the deal has not been confirmed yet, the Board of Codemasters are seemingly keen to “recommend unanimously that Codemasters’ shareholders accept the Possible Offer”. Take-Two, however, reiterated that “[while] discussions are ongoing, there can be no certainty that a firm offer will be made for Codemasters”.

The press release also states that in accordance with U.K.’s City Code on Takeovers and Mergers, Take-Two must either commit to making an offer, or announce its intentions to not make an offer, by December 4.

Dirt 5
Dirt 5. Credit: Codemasters

“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,” said Take-Two of the potential acquisition.

Take-Two Interactive currently owns major studios such as Rockstar Games (Grand Theft Auto V, Red Dead Redemption 2), and 2K Games (NBA 2K21, Mafia: Definitive Edition). Codemasters, on the other hand, focuses primarily on racing games, such as Dirt 5, F1, Project Cars and more.

Take-Two’s intention to acquire Codemasters follows the news of its subsidiary studio Rockstar Games purchasing and rebranding Crackdown 2 developer Ruffian Games in October.

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In other major gaming acquisition news, it was reported in September that Microsoft is in the process of acquiring ZeniMax Media for $7.5billion, making it the largest gaming deal in history. Purchasing ZeniMax will give Microsoft control of studios such as Bethesda Softworks, id Software, and Arkane Studios.

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