F1 game developer Codemasters set for $973m buy-out

©Codemasters

Codemasters, the developer and publisher of Formula 1's official computer game, has received a $973m buy-out offer from leading US game publisher Take-Two Interactive.

The British company's board of directors has yet to accept the offer but the transaction is expected to go through, with Take-Two paying roughly $1.58 per share in cash, with an additional $4.82 per share in Take-Two stock.

Under UK law, Take-Two has until December 4 to finalize the offer and its terms.

Founded in 1986, Codemasters is one of the UK's oldest game developers and publishers.

The company has held the exclusive rights to develop the official F1 annual franchise since 2008, releasing its 13th entry earlier this year, Formula 1 2020. But Codemasters is also the home to an array of other racing games such as DiRT, GRID, Macro Machines, etc…

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The global coronavirus pandemic has been a massive tail wind for game publishers, with lockdown measures boosting the enthusiasm of consumers and gamers, a success that has spawned a new online community of racing fans, with virtual series popping up left and right.

Take-Two, which owns a multitude of publishing labels, holds a portfolio of titles that includes Grand Theft Auto, NBA 2K and BioShock among others.

The public company said in its announcement on Monday that it "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."

Last Friday, Take-Two released its financial results for its fiscal year 2021 second quarter, recording a net profit of $99.3M and net revenues of $841M.

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Phillip van Osten

Motor racing was a backdrop from the outset in Phillip van Osten's life. Born in Southern California, Phillip grew up with the sights and sounds of fast cars thanks to his father, Dick van Osten, an editor and writer for Auto Speed and Sport and Motor Trend. Phillip's passion for racing grew even more when his family moved to Europe and he became acquainted with the extraordinary world of Grand Prix racing. He was an early contributor to the monthly French F1i Magazine, often providing a historic or business perspective on Formula 1's affairs. In 2012, he co-authored along with fellow journalist Pierre Van Vliet the English-language adaptation of a limited edition book devoted to the great Belgian driver Jacky Ickx. He also authored "The American Legacy in Formula 1", a book which recounts the trials and tribulations of American drivers in Grand Prix racing. Phillip is also a commentator for Belgian broadcaster Be.TV for the US Indycar series.