F1 video game developer Codemasters set for £739m takeover by US giant
Videogame developer Codemasters has announced it plans to sell to US giant Take-Two, the creators of the Grand Theft Auto franchise, after it received a takeover bid valuing it at £739m.
The proposal has not yet been accepted by Codemasters, although it is understood the company, which has an operation in Runcorn, is set to recommend to its shareholders that the offer be accepted.
A statement released by Take-Two said: “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.”
In June, Codemasters announced a rise in revenue and profit for the 12 months to 31 March.
Turnover was up 6.8% to £76m, while profits were up 4.5% to £65.2m.
During the year, Codemasters extended its contract with Formula One Management for exclusive game rights for the FIA Formula One World Championship franchise from 2021 until 2025, with a further option for the 2026 and 2027 seasons.
The company floated on London Stock Exchange’s junior market in May 2018 with a valuation of £280m.
Founded by David Darling and his brother Richard in 1986, the company is one of the oldest British game studios.
The group originally made games for the Commodore PC and Spectrum console.
