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News

07 Nov 2020

Take-Two In Talks To Acquire Codemasters For $1 Billion

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Who Are Take-Two Interactive?

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Who Are Codemasters?

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The Deal

Take-Two, the parent company of Rockstar and 2K, have an offer to acquire Codemasters for nearly $1 billion.

The company is the third-largest publicly traded game company in the Americas and Europe after Activision Blizzard and Electronic Arts.

Who Are Take-Two Interactive?

Take-Two Interactive began in 1993 as a game developer, publishing games such as Star Crusader and Black Dahlia, before becoming a publisher.

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KING OF THE MOUNTAIN: GTA is Take-Two's largest property, one of the biggest selling franchises of all time.

They began publishing games in 1995, but didn't get their big break until they acquired DMA Designs, later renamed as Rockstar North, and took ownership of the Grand Theft Auto series.

Over the years they acquired and started many studios.

Most notably Rockstar Games, the studio behind GTA, Max Payne, and Red Dead Redemption.

As well as 2K who developed the NBA, NHL, and WWE 2K series, as well as Borderlands and Bioshock.

Currently Take-Two Interactive has a market cap of $13 billion, making it the third-largest publicly traded game company in the Americas and Europe after Activision Blizzard and Electronic Arts.

Who Are Codemasters?

Codemasters are the grandfathers of racing games and currently hold the licenses for most of the top racers.

Beginning in the 80s, they really found their footing in the racing genre in the mid 90s with the likes of TOCA and Colin McRae Rally.

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GIVE ME THE DIRT: Dirt is a popular franchise by Codemasters, formerly the Colin McRae Rally series.

The Colin McRae series is still around today, but is now branded as Dirt.

And they also hold the license for the F1 series of games, as well as GRID.

In 2019 they acquired Slightly Mad Studios, the developers behind the Project Cars series, adding yet another franchise to their list.

The Deal

Take-Two Interactive has made a "possible offer" to acquire Codemasters for $973 million, this would also include Slightly Mad Studios.

Codemasters said in a statement of its own that the board intends to "recommend unanimously that Codemasters' shareholders accept the Possible Offer."

"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."

Due to UK law, Take-Two need to either fully commit to the offer, or walk away from it, by December 4th, meaning an official announcement is likely to happen soon.

While this likely won't mean much to many players, it is possible that the studio may collaborate with other Take-Two companies on future titles.

Codemasters could chime in and help Rockstar create even better vehicle physics in games such as GTA 6, if it is ever released.