PUNT OF THE WEEK: Video game maker Codemasters

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Game on: Codemasters joined London’s junior market, AIM, in June 2018 and is worth £430m


PUNT OF THE WEEK: Video game maker Codemasters has been hired by the Fast & Furious movie franchise

Game on: Codemasters joined London’s junior market, AIM, in June 2018 and is worth £430m

What is it?

An award-winning video game developer that specialises in racing games. It joined London’s junior market, AIM, in June 2018 and is worth £430million.

What’s the latest?

In November it bought rival Slightly Mad Studios for up to £152million for a mix of cash, new shares and performance target-dependent payments. 

It means Codemasters is involved in the new game for the Fast & Furious racing movie franchise, to be released in May.

Who backs it?

Soros Fund Management is the largest investor with an 11 per cent stake, while other major institutional shareholders include Canaccord Genuity, Janus Henderson Investors and HSBC Global Asset Management UK.

Why should you invest?

The Slightly Mad acquisition will give it new customers and bolster its developers. 

It has lucrative long-term contracts, such as the licence to make F1 games, as well as adding new titles. Shares rose 74 per cent in 2019.

And why shouldn’t you?

The takeover is expected to knock profits for the current financial year and if a big-name game in its pipeline is a flop it could hit the company hard.

 



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