Why Minecraft-Maker Acquisition is Lucrative for Microsoft Corporation (MSFT)


The X-Box maker, Microsoft Corporation (NASDAQ:MSFT) wants to envelope better grossing games, and this is known from the fact that the company has already started negotiating for the acquisition of Minecraft maker. According to The New York Times, Minecraft game maker is most likely to be acquired in a transaction worth over $2 billion. The move is a direct indicator that Microsoft wants a renowned and most-played game like Minecraft in its devices family.

A Lot to Be Done; but Benefit to Microsoft is Evident

Nevertheless, both the parties need to sit at a round table and put all the terms and conditions on it. A lot more details still need discussion and of course, brainstorming regarding the deal’s nitty-gritty. The deal is most likely to be finalized by September end.

If both parties agree to this deal, Microsoft will be in a win-win situation because acquisition of Minecraft will make it Master of the online world. Minecraft has, as of now, has answered how to achieve blockbuster success, without following the stereotypical contemporary games business conventions.

Motivation behind the Deal

Minecraft reminds everyone of the Lego bricks, but what makes it a lucrative acquisition for Microsoft is the fact that it is already a high-revenue riding business. The Wall Street Journal reported that Mojang, privately-held Swedish maker of Minecraft generated approximately $360 million revenue in the year 2013, an increase of 38% in comparison to 2012.

Another reason that inspired Microsoft for this deal is that it wants attractive content like Minecraft to be available on its crucial platforms. The game is not available at present, on the Windows OS, something that Microsoft has been battling with to make it stand aligned in competition with Google Inc (NASDAQ:GOOGL)’s Android and Apple Inc. (NASDAQ:AAPL)’s iPhone.

Gaming business is indeed one of the imperative apps for computers and mobile devices. Unavailability of top most gaming titles at the right time has always been a menace for Microsoft that wishes to compete in an aggressive market with Google and Apple.