Take-Two walks away from Codemasters, paving way for EA purchase

Take-Two has allowed its offer for UK games company Codemasters to lapse, paving the way for EA to seal the deal.

In November 2020, Borderlands and Grand Theft Auto publisher Take-Two agreed on a near-$1bn pricetag to snap up racing giant Codemasters.

But in December, EA swooped in with a $1.2bn offer, which was accepted by the Codemasters board. EA’s offer is all-cash, valuing Codies at £6.04 for each ordinary share.

Now, Take-Two has officially walked away, but insisted it’s still on the hunt for game developers.

“Take-Two remains a highly disciplined organisation and, with its strong balance sheet, will continue to pursue selectively organic and inorganic opportunities that are designed to enhance the company’s long-term growth and deliver results to its shareholders,” Take-Two said in a statement.

Last month, EA said it hoped to complete the Codemasters deal during the first quarter of 2021. Assuming it goes through, the deal would bring the UK’s racing game powerhouse developer under the same umbrella as Criterion, the developer behind Burnout and Need for Speed. Codemasters develops a number of owned intellectual property, including Dirt, F1, and Grid.