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Microsoft (MSFT) Said in Talks to Acquire 'Minecraft' Maker Mojang for $2B+

September 9, 2014 6:44 PM EDT

(Updated - September 10, 2014 7:47 AM EDT)

Microsoft (Masdaq: MSFT) is an advanced talks to acquire Minecraft maker, Mojang, in a deal that could be worth over $2 billion.

The WSJ reported Tuesday night that the deal between Microsoft and Mojang could be completed as soon as this week.

Many industry watchers note that the move would be surprising. Mojang founder Markus Persson has blocked outside investors and has been outspoken against larger firms in the past.

For Microsoft, it means potentially getting a new crop of younger fans interested in its Xbox gaming console.

Mojang sold over 50 million copies of Minecraft in 2013 despite having been released in 2009. Profits last year were over $100 million. The company has reached licensing deals with names like Scholastic (Nasdaq: SCHL) and Warner Bros. pictures.

From Streetinsider's standpoint, we've constantly seen the Minecraft app at or near the top of the Google (Nasdaq: GOOG) Android charts. The game is also in the top five for Apple (Nasdaq: AAPL) iOS. Both those stats speak volumes given how mobile has become a very necessary component for tech giants.

But, some might question whether or not Mojang could go the same route as Zynga (Nasdaq: ZNGA) or King Digital (NYSE: KING), which have produced hit mobile games, but have floundered as of late. Given the small staff and flat rate Mojang charges for Minecraft, it might be unlikely that that franchise would collapse anytime soon.

This would also be the first major acquisition for Microsoft CEO Satya Nadella, who took the helm last February. Nadella views video games as a key way to expand the company's presence in PCs and mobile, calling the segment the single biggest digital life category, measured in both time and money spent, in a mobile-first world.

Shares of Microsoft are positive in early trading Wednesday.



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