Microsoft Corporation May Acquire Minecraft Maker For $2B [REPORT]

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Microsoft Corporation (NASDAQ:MSFT) is reportedly on the verge of concluding the acquisition of Minecraft maker Mojang for a whopping $2 billion plus, according to the Wall Street Journal. Minecraft is a block building video games, highly popular among masses.

Deal to support Microsoft Xbox

There was no confirmation if the deal would be finalized, and Mojang executive was not available immediately for the comment. On the other hand, Microsoft executive said that the company keeps away from commenting on rumors or speculations.

With the acquisition of Mojang, Microsoft Xbox could get a major uplift as Mojang has sold more than 54 million units of the titles on all hardware platforms such as Microsoft’s Xbox 360, Apple’s Mac, Sony’s PlayStation 3, and mobile platforms like Apple Inc.’s iOS and Google’s Android.

Minecraft was released in 2009 and became massively popular by offering a simpler version. The title is very popular with a profit of $128 million in 2013, according to Gamespot.  Minecraft building block games is indicative of Lego, and both have entered into multiple ties in sets to bring the game from the digital into a physical. Mojang, also, entered into a deal with Scholastic on books and with Warner Bros. for a forthcoming movie, according to the Journal.

Does the deal Fits Nadella’s vision?

The deal worth 10 figures could be the first for Satya Nadella, since joining as the CEO of Microsoft.  According to the Journal, the decision (if true) is more of an unexpected one from Nadella, who previously said that the Xbox business is not the core segment of Microsoft. However, Nadella also said that the company considers video games as a way to spread in PC and mobile phones.

In a letter to the employees in July, Mr. Nadella called gaming the “single biggest digital life category, measured in both time and money spent, in a mobile-first world.” However, Mojang founder Markus “Notch” Persson voiced on Twitter that he wants the company to stay independent.

Once, Persson asked Microsoft to stop “trying to ruin the PC as an open platform.” Report from Bloomberg suggests that Persson and Microsoft are in cordial terms post Minecraft’s Xbox port success.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

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