Microsoft MSFT is pushing ahead with a deal to buy Mojang, Swedish based creator of video game ‘Minecraft’ for $2.5 billion.
This is Microsoft’s second attempt at purchasing Mojang, but this time the deal does not include adopting the founder members though the experienced Stockholm office with 40 employees will stay open.
Will Microsoft shares gain from this acquisition? That’s the hope! And though the tech giant’s future does not depend on the sale, Microsoft could do with breaking into the young demographic it keeps losing out on.
With 50 million current customers, the ‘Minecraft’ phenomenon started in 2009, attracting a young trendy audience with virtual worlds of zombies, skeletons and other freaky characters. It will be Microsoft’s latest entertainment property, ultra-popular on PCs, smartphones and videogame consoles like Microsoft's Xbox.
So far Mojang has put together licensing deals with Lego A/S for toy figures, Scholastic Corp. SCHL has produced guide books based on the game, and Warner Bros is looking forward to producing a feature film.
Microsoft eased pre-trade on Monday 15 September by 0.2%, rising over the course of the week. The exclusive agreement was signed in July 2014, with Microsoft keen to seal the deal against parrying competition. Expectations to close late in the year had rallied the stock by 25% on Tuesday 16 September.
Attempting to surge the use of their Windows Smartphone system, Microsoft see the purchase of Mojang and specifically ‘Minecraft’, as their sustaining brand into the younger mobile market.
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