Microsoft is in talks to acquire 4-year-old Mojang AB, the company behind popular game title Minecraft in a deal valued at over $2 billion, according to the Wall Street Journal. The deal is expected to conclude by the end of this week or through next week. Also Read - Windows 11: Release date, top features to expect, how to upgrade and more
Minecraft is one of the most successful titles available on Microsoft gaming platforms, among other platforms including mobile. It was the second best selling game by physical retails copies sold in July for Xbox 360, according to data from NPD Group. Just a month ago, it arrived on Xbox One and PlayStation 4 gaming consoles. If Microsoft does acquire Mojang, it would be one of the biggest success stories in the gaming industry till date. Also Read - Windows 11 could be a free upgrade for you provided you fall in this category
According to the report, Mojang founder Markus Persson and Microsoft have been in talks for months. Xbox chief Phil Spencer also said to have close friendship with Persson. Also, if the deal closes, Microsoft plans to pay for it with the cash held overseas to avoid taxes. Also Read - Minecraft cheats and console commands: How to use them to make your blocky project easy
Minecraft was founded by Persson in 2010, who coded the game after coming home from his day job at a UK based gaming site. It’s a game about saving oneself from getting eaten by monsters who appear after dark. Initially, the game title was only available through Persson’s website where he sold it for Euro 15 a copy. The company has sold over 50 million copies in the past five years.
But why would Microsoft spend $2 billion dollar on a gaming company? One of the reason is Minecraft’s massive success. The game is able to churn a huge amount of money in both revenue and profits. Just last year, it reported profits of $126 million on revenue of $289 million.
Also, with the title, Microsoft will be able to leverage money from other platforms including Sony’s PlayStation, Apple’s App Store, and Google’s Play Store.