Codemasters, a veteran-based-in-UK video game developer, plans to sell the company to Take-Two, as the BBC reported. Codemasters is known for its racing games, including from the Formula 1 franchise.
The blockbuster deal values Codemasters at $973m. Following the announcement, as Reuters reported, Codemasters' shares made an 8.6% raise while Take-Two's were up 2.9%.
The announcement was made right on the same date as the launch day of Codemasters' latest racing title, Dirt 5. Dirt 5 is available on Windows, PS4, Stadia, and Xbox One. A version for next-gen consoles like PS5 and Xbox Series X/S is eyeing a 2021 release.
Why is Take-Two acquiring Codemasters?
However, the deal is yet to be finalized. Both parties confirmed the deal following media reports of a possible acquisition.
In the same year, Codemasters also received an exclusive partnership with Fédération Internationale de l'Automobile (FIA) to create the upcoming World Rally Championship series from 2023 until 2027. The first game is eyeing a 2024 release, meaning that Take-Two's worldwide reach would be all over its marketing campaign.
That said, the partnership of the two would bring the best out of two world-class video game developers. Back in the days, veteran companies are known for their sports and racing games. Take-Two has many subsidiaries, including Rockstar Games (Grand Theft Auto, Red Dead Redemption) and 2K (NBA 2K, PGA 2K).
"Take-Two believes that the combination of Take-Two and Codemasters would bring together two world-class interactive entertainment portfolio," Take-Two's spokesperson told BBC.
The statement adds that such a deal would benefit Codemasters by Take-Two's worldwide distribution and 2k's branding, product development, and marketing.
Last year, as Video Games Chronicles reported, Take-Two CEO Strauss Zelnick detailed its plan to capitalize on 'extraordinary tailwids' in the market.
"We do expect to enhance our release schedule - we launched Private Division, we bought Social Point," he said. "And I think you can expect opportunities that are both driven organically and inorganically."
The History of Codemasters
The home to Formula 1 games on PS4, Codemasters, was founded in 1986 in Southam, England. It's one of the oldest video game publishers in the UK.
Started by two brothers Richard and David Darling, Codemasters released their first-ever game, BMX Simulator, in 1986. Back in the days, Spectrum and Atari 8-bit dominated the gaming console market.
Up to this writing (11/9), Codemasters has several international branches in Birmingham, Cheshire, Kuala Lumpur, and India. Its only subsidiary, Slightly Mad Studio, is based in London. Need for Speed: Shift and Project: CARS series are among the well-known titles from the devs.