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Take-Two withdraws bid for Codemasters following EA offer of $1.2bn

Electronic Arts now likely to take over British racing games developer as Take-Two considers other acquisitions

Take-Two has pulled out of the race to buy UK-based developer and publisher Codemasters.

The company originally revealed it was in talks to buy the racing games specialist back in November in a deal that valued Codemasters at just shy of $1 billion.

However, rival publisher Electronic Arts swooped in with a surprise bid a month later, planning to acquire the company for approximately $1.2 billion.

Upon this news, Codemasters' Board of Directors withdrew their recommendation to sell to Take-Two.

Today, Take-Two told investors via a statement that it has "lapsed its offer."

The publisher had the right to do so if Codemasters did not hold a shareholder meeting related to the acquisition on or before January 12, which it has not, and Take-Two has not extended this date.

One final note in the statement says that Take-Two 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."

This suggests the publisher is looking into alternative acquisitions.

With no notable counter-offer, it looks like Electronic Arts is set to fully acquire Codemasters.

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James Batchelor avatar
James Batchelor: James is Editor-in-Chief at GamesIndustry.biz, and has been a B2B journalist since 2006. He is author of The Best Non-Violent Video Games
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