Codemasters

Video game giant Electronic Arts announced it would buy Britain's Codemasters, known for its F1 and Dirt racing game franchises., in a deal worth $1.2 billion. EA's move has come as a surprise - most people thought Take-Two's proposal last month (had offered a package worth $973m) was pretty much a done deal, and Codemasters itself had supported the earlier buy-out plan.

There is still a chance that Take-Two could respond with a better offer, and spark a bidding war between the two US gaming giants. This particular race is not won quite yet.

"We believe there is a deeply compelling opportunity in bringing together Codemasters and Electronic Arts to create amazing and innovative new racing games for fans," said EA's CEO Andrew Wilson.