Update: VGC reports that Codemasters and Take-Two have announced that they have reached an acquisition agreement for approximately $980 million, as previously reported. The two companies informed investors of the agreement in a note released Tuesday, November 10. If approved by shareholders, the sale could be completed by the first quarter of 2021. In a new official statement, Take-Two once again reaffirmed its satisfaction with the deal.

"We are very pleased to announce this recommended transaction with the Codemasters board of directors," said Take-Two CEO Strauss Zelnick.

"Codemasters' Board of Directors, with its leading position in the sports game, firmly believes that we will benefit from Take-Two's broad capabilities that will help facilitate Codemasters' long-term success," said Gerhard Florin, Codemasters' Chairman.

Original article Take-Two Interactive confirmed that it has made a "potential offer" to acquire British racing studio Codemasters outright in a deal worth $973 million, according to Reuters. If the deal is completed, Take-Two would also gain ownership of Slightly Mad Studios, the developer of Project Cars.

In a statement, Take-Two said that the acquisition is contingent on several factors, including the completion of due diligence and the approval of the Codemasters board of directors. Codemasters stated in its own statement that its board of directors intends to "unanimously recommend that the shareholders of Codemasters accept the Offer."

"The combination of Take-Two and Codemasters brings 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 believe," the publisher stated.

"In addition, Take-Two will be able to leverage Take-Two's global distribution network and 2K's core operational expertise in publishing, including live operations, analytics, product development, brand and performance marketing, to help Codemasters We believe it will benefit our business performance."

Under the UK City Code rules on acquisitions and mergers, Take-Two must commit to making an offer for Codemasters by December 4 or withdraw from the process.