UK-based Codemasters, who develop the likes of DIRT Rally, F1 and Grid, have been looking to sell to Take-Two over the last few months. With an already agreed takeover and £725m on the table, the two firms have shaken hands and planned to divvy up the shares and sales from next Spring onwards. However, recent news has emerged that EA has stepped forward and placed a potential knockout bid over the agreement.
Take-Two, who owns both Rockstar Games and 2K labels, has made an offer combining both shares and sales. Codemasters agreed to this bid in November of this year and are now setting sights towards 2021. But with the $40bn giant, EA looking to gatecrash, it might be likely that the transaction will head south and a new agreement could be established.
Take-Two looks to purchase Codemasters as a way of introducing the likes of Formula 1 racing into its enormous portfolio of sporting releases. With a strategic way of hitting two birds with one stone, Take-Two hopes to benefit from several new award-winning franchises, and Codemasters will receive the perks from the US-based marketing and distribution structure. However, could EA sway the UK giant towards a better deal? Or, could this be the very beginning to bidding warfare?
We'll be keeping an eye on the deal as it progresses. In the meantime, however, we're left to wonder whether or not EA or Take-Two would do a better job with the UK-based developer. It could mean a make or break situation depending on the way the winds blow over the course of the next few months. Either way, we'll be interested to know how Codemasters plan to spend 2021.