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Reuters: 'Microsoft announcing Mojang deal on Monday; $2.5 billion'

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PetriP-TNT

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tumblr_lox02eaI2C1r0wgiuo1_400.gif
 
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Epsilonart

Neo Member
I wonder what is the point of buying the minecraft license , I don't see them making a "minecraft 2 " or remove all the other versions of the game to make it a microsoft exclusive .
 
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Naked Snake

Member
Was just going to make the thread.

I'm one of the few who thought 2 billion was low.

When apps like Whatsapp are bought for $19 billion and Instagram or Tumblr for $2 billion, I don't find the price for Minecraft outrageous at all.

Proper link: http://www.reuters.com/article/2014/09/12/us-mojang-microsoft-idUSKBN0H72EV20140912

Microsoft’s impending purchase of Mojang, the Swedish developer with 100 million players of its open world Minecraft game, is more aimed at pulling users onto the software company's obscure mobile platform than its better known PC system or Xbox game console.

The software company's Windows Phone system has only 2.5 percent of the world's smartphone market, and its Surface tablet barely more, according to tech research firm IDC. Growth is hampered because many app and game developers ignore it.

Enter Minecraft, which is the top paid app both on Apple Inc's (AAPL.O) iOS and Google Inc's (GOOGL.O) Android systems. Microsoft will unveil a $2.5 billion deal to buy its owner on Monday, according to a source briefed on the matter.

“It seems like Microsoft is looking at Mojang and Minecraft as a way to tap into this enormous cultural phenomenon," said Dave Bisceglia, Chief Executive of independent game studio Tap Lab. "If you look at iOS, Minecraft has been a top-grossing game for quite some time, if Microsoft could on Windows phones give players a unique and compelling experience that you can't get on the other platforms, that could be a driver to sell devices to existing Minecraft fans.”

...

"We don’t view this acquisition as a signal of Microsoft's intent to double down on Xbox but consider it an attempt to better address mobile on a cross-platform basis," said Nomura analyst Rick Sherlund in a note to clients this week. "This also appears to be consistent with (Microsoft) CEO Satya Nadella’s mobile and cloud strategy."

Microsoft is expected to pay close to $2.5 billion for Mojang, or about 8 times sales last year. That is small change for Microsoft, which has $86 billion in cash and short-term investments. But it is relatively large and expensive for game company acquisitions, which do not have a stellar record of success.

Japan's SoftBank Corp (9984.T) paid $1.53 billion for a 50 percent stake in Finnish game maker Supercell last year at about 3.5 times projected annual sales. Electronic Arts' (EA.O) $750 million acquisition of PopCap in 2011 was valued around 10 to 11 times sales.

Joost van Dreunen, Chief Executive of research firm SuperData, said the price tag ”seems like a lot for a title that has certainly not peaked but is certainly not in its initial frenzy."

He doubts that Minecraft can really help Windows phone sales: “Minecraft itself has done very well on the iOS platform, but it’s better on the iPad, the screen is bigger," he said. "I don’t see why this could drive handset sales.”
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Sir_Crocodile

Member
Is this a wise investment? It's been released on loads of consoles and made tons of money, but is there a lot of future growth here? Wondering if MS are ever going to make 2.5B back from the deal. The game has already been released on their main rivals system, so it doesn't help with differentiation unless MS release an exclusive sequel. Minecraft holds no real interest for me, so I can't really tell what kind of expansion/sequel potential it has.
 
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Napalm_Frank

Member
Epsilonart said:
I wonder what is the point of buying the minecraft license , I don't see them making a "minecraft 2 " or remove all the other versions of the game to make it a microsoft exclusive .
Click to expand...

I don't see any other point THAN Minecraft 2. It's not like they can remove the PS3/PS4/PSV versions Sony has publishing rights to.
 
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timlot

Banned
Wow, the first thing that came to mind is the millions of children starving in 3rd world countries. Mean while Microsoft got 2.5 billion to spend on an 8-bit lego builder. smh
 
K

Kayant

Member
Also deal is targeting mobile.

Microsoft will unveil a $2.5 billion deal to buy its owner on Monday, according to a source briefed on the matter.

“It seems like Microsoft is looking at Mojang and Minecraft as a way to tap into this enormous cultural phenomenon," said Dave Bisceglia, Chief Executive of independent game studio Tap Lab. "If you look at iOS, Minecraft has been a top-grossing game for quite some time, if Microsoft could on Windows phones give players a unique and compelling experience that you can't get on the other platforms, that could be a driver to sell devices to existing Minecraft fans.”
Click to expand...
 
R

RamzaIsCool

The Amiga Brotherhood
Notch sqeezed another $500 mil out of the pocket of MS at the last minute. lol the dude is a legend!

This deal isn't solely about the Xbox business. So the "I-wish-they-would-spend-2.5-billion-on-first-party-titles" comments are a bit unwarranted imo.
 
O

Occam

Member
For 2.5 billion dollars, they could have replaced every Xbone out there with a more powerful revised model and on top could have created 5 awesome AAA titles.
 
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Thomper

Member
Occam said:
For 2.5 billion dollars, they could have replaced every Xbone out there with a more powerful revised model and on top could have created 5 awesome AAA titles.
Click to expand...
Or they could buy Minecraft, which has the potential to be even bigger than 5 'AAA Titles'.
 
K

KojiKnight

Member
Anyone know how much Perssons is set to get just himself alone? I imagine he had a pretty hefty of the percentage of the company right?
 
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Stop It

Perfectly able to grasp the inherent value of the fishing game.
BrokenEchelon said:
Imagine the new first-party IPs they could have invested in instead.
Click to expand...

Well, from a purely business point of view, this makes more sense than that, as sad as it is.

Still, that's a huge sum and surely is buying at the peak of Mojang and Minecraft's valuation. Still, if/when Minecraft 2 is made it could sell bajillions so what do I know.
 
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Orthogonal

Member
No way this has a positive ROI. I don't know what Microsoft is thinking here.

A Minecraft sequel has no chance of doing as well as the original. That game is a once in a lifetime freak accident.
 
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