US publishing giant Take-Two has confirmed that it is in discussions with UK racing specialist Codemasters about an acquisition.

In a post on its investor relations page, the GTA parent firm said that it has made a proposal to the British development icon, which would value the company at a whopping £740m, or close to $1bn. A quarter of this would be paid out in cash, while the other 75 per cent takes the form of Take-Two stock.

Take-Two has until 5pm on December 4th to say whether or not it is actually going to buy Codemasters.

"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 2K and Codemasters in the racing genre," both companies said in their respective statements.

"Take-Two believes that it can bring benefits to Codemasters performance by leveragingTake-Two global distribution and 2K's core operating expertise in publishing, including, live operations, analytics, product development, and brand and performance marketing."

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