The stage is set for the announcement of the acquisition of Minecraft developer Mojong. Reuters has reported that Microsoft will announce its takeover of Mojong tomorrow. The deal was worth $2.5 billion and is more than $2 billion which was earlier reported by Wall Street Journal.
Experts have given missed reasons for this latest acquisition by Microsoft. Some experts feel that it is meant to boost the Microsoft’s Mobile business. Experts feel that the latest acquisition does not signal any slackening in support for Xbox but should be seen as an attempt to enable mobile on a cross platform. It also seems to be in line with the Satya Nadella’s mobile and cloud strategy.”
The Minecraft was originally meant to be a desktop game but its Pocket Editions for the Mobile became more popular and are now available through iTunes App Store and Google Play. By April more than 21 million copies of the game were sold.
Minecraft is available for PC, Mobile, Xbox 360 and PS3. It has been released for PlayStation 4 and Xbox One also. Minecraft is immensely popular and its popularity can be gauged from the fact that it has made into the both digital and retail top 10 sales charts month after month. Some experts are also telling that Microsoft will keep Minecraft available for rival products
Why is Microsoft getting ready to pay as much as $2.5 billion for it?
Microsoft has not been into acquisition of big gaming companies and experts are wondering why other potential buyers like Electronic Arts and Activision, as well as big Web players with ties to Minecraft, like Google/YouTube and Amazon did not eye acquiring this company?
For $2.5 Billion Microsoft will be getting a very small company which employs just 28 members. However it is a very profitable one and last year its profits touched $126 million on revenue of $289 million. 42% of that goes to Notch Enterprises which was a front created by Minecraft inventor Markus “Notch” Persson. The purchase price of $2.5 billion is almost 20 times the profit.