Take Two Interactive is the parent company of known game publisher companies like Rockstar Games and 2k. Recently they have made a $994 Million deal for acquiring racing game developer Codemasters.
Take Two Interactive Software, Inc is a famous American video game company based in New York City. They own two massive publishing labels, Rockstar Games and 2k who are famous for publishing games like Grand Theft Auto V, Red Dead Redemption 2, Mafia, and many more titles.
Recently Take two made a $994 Million deal in order to start the process of acquiring Codemasters, a UK-based publisher of racing games on console, PC, and mobile. Codemasters is famous for racing games like the Dirt series, Grid series, and F1 series. The acquisition process is anticipated to be completed in the first quarter of 2021.
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Take Two’s reasoning for the acquisition:
Take two published a blog post about the Strategic Rationale for going after this deal-
- 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 label and Codemasters. Take-Two believes that it can bring benefits to Codemasters’ performance by leveraging Take-Two’s global distribution and marketing infrastructure, together with Take-Two’s core operating expertise in live operations, analytics, product development, and brand and performance marketing.
- The Take-Two Board believes there is a compelling strategic and financial rationale for the acquisition because it:
- Creates a global leader in interactive entertainment publishing through the combination of Take-Two and
- Codemasters’ complementary and critically-acclaimed sports and racing franchises and world-class creative teams;
- Enhances diversity and revenue visibility of the Take-Two IP portfolio through the addition of Codemasters’ regular
- title release cadence and high-quality racing titles;
- Delivers compelling financial benefits for the combined entities – growth, earnings and operating margin accretive;
- Provides enhanced revenue opportunity and cost synergy potential.
- The combination is expected to be accretive to Take-Two’s pro forma adjusted net income per share (excluding Take-Two’s customary adjustments used by its management and the Take-Two Board to adjust Take-Two’s US GAAP financial results) from the first full fiscal year following completion of the acquisition, which is anticipated to be Take-Two’s fiscal year 2022, ending March 31, 2022.
- Frank Sagnier, Chief Executive Officer of Codemasters, and Rashid Varachia, Chief Financial Officer of Codemasters, along with the senior executive management team of Codemasters intend to remain with Codemasters following completion of the acquisition and will continue to lead the Codemasters business within Take-Two’s organization and its 2K label.
Strauss Zelnick, Chairman and CEO of Take-Two said, “We are exceedingly pleased to announce this recommended transaction with the Board of Codemasters”.
So hopefully this acquisition deal will give us some great racing games in the future.