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Microsoft buys Mojang for $2.5 Billion

Started by September 15, 2014 04:48 PM
32 comments, last by BHXSpecter 10 years, 4 months ago
Yeah, so I'm all for making "lol what wouldn't you do for a $2.5 billion Klondike Bar" joke, but since everyone in this thread seems a bit confused (not to pick on this specific quote):

Personally, unless you're a bond villain, I really don't think anyone needs that kind of money. Notch was already a multi-millionaire, he had more than enough money to live well for the rest of his life without working another day.


That's not what happens in these cases. /Mojang/ was bought for $2.5 billion, not Notch. Share holders such as they are certainly get a healthy chunk of that but these kinds of agreements generally stipulate that the purchasing company invests much of the purchase amount into the purchased company. In other words, on paper Microsoft bought something for $2.5 billion but the actual cash that trades hands is far less. And it's very unlikely to be cash but rather other non-liquid assets like stock.

Then let's not forget taxation, which may well be part of why Microsoft put forth such a high dollar mark. There's business reasons to spend money you otherwise don't need to. Remember when Microsoft bought Skype for a mere $2 billion and everyone lost their minds?

There can also sometimes be advantages to buying a company that's operating in the red and liquidating it right after (not likely what's going on here). Buy a company, inherit its debt, pay less taxes that period, liquidate acquisition, settle its debt, move on. Rememebr when EA bought <insert game studio> and shut them down right after?

Most likely Notch personally is only a few hundred percent richer than he already was. The vast majority of that $2.5 billion is never going to go anywhere near his personal coffers.

Sean Middleditch – Game Systems Engineer – Join my team!

I'm just worried that Microsoft will mess up Minecraft and make it Windows exclusive. It is a shame because it is a quite entertaining game.
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I'm really looking forward to a Minecraft 2 with a proper API honestly. Sure someone else could make it, but Microsoft has a ton of game studios. Their Team Dakota and Skybox Labs studio is releasing Project Spark in a few weeks. I honestly think because of their background in building an API for Project Spark and their work on sandbox games (and unless the whole team is continuing work on Project Spark) it might be their goal. Just guessing though after scanning MS's studios and trying to figure out their goals and plans. Having two studios finishing development on a project and needing a new IP they spend 2.5 billion. Far fetched, but possible.

Given that Minecraft is this generation's Lego this makes a lot of sense, it also makes sense not to mess with it or lock it onto a single platform (and this isn't 90s MS, the existence of other platforms isn't something they deny any more and are more open to working on them).

This might push a WinPhone or Store based version in order for MS to promote their platform but this doesn't mean every other platform is dead and gone - the important thing is the number of people already using it after all; you've just brought the eyes of a few million children effectively and long term that can pan out nicely if you do it right - locking out other platforms and forcing people to rebuy isn't how you do it right.

Everyone keeps saying 'minecraft 2' but there isn't really a need for it, they could just keep evolving it instead of trying to dick with the brand at all.

End of the day it makes more sense to own the IP/studio, leave it largely as it is and pick up the income from the game, surrounding merch and of course the eyes of the people now playing your product.

I think the thing which baffles me the most about this is the reaction of some people; the fact I've seen the phrase 'betrayed by an idol' and 'know whos principles I can trust' in relation to Notch is... well... insane frankly.

I'm just worried that Microsoft will mess up Minecraft and make it Windows exclusive. It is a shame because it is a quite entertaining game.

I've read that they're going to keep it multiplatform, I need to recheck though. They did keep Skype multiplatform at least (although Skype for Linux is kind of abandoned, only seeing protocol updates for the most part... though I guess that sticking to the pre-Microsoft UI is probably seen as a good thing by many people)

Don't pay much attention to "the hedgehog" in my nick, it's just because "Sik" was already taken =/ By the way, Sik is pronounced like seek, not like sick.

I think this article sums it up quite well

Is it good overall? For Mojang? Undeniably yes – they’re rich now. For Notch? Without question – he’s free now. For Minecraft? No, I’ve not convinced myself there.

But I figure at least in the short term, it’s fine. And, well, I’ve had five years’ of pleasure from the £10 I spent on that game – I’m pretty convinced I already got my money’s worth.
if you think programming is like sex, you probably haven't done much of either.-------------- - capn_midnight
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The only platform I'd rule our is PlayStation - there's too much friction between Sony and MS. It might not even be due to MS holding it back either, Sony would be likely to block a MS-developed game...
Possibly, although there was a recently issued press released stating that the game was coming out on the PS4 so... *shrugs*

Wonder if Microsoft will pull an EA and shut it down after they buy it.


For what purpose would they spend 2.5 billion just to shut it down? Companies acquire-and-shut-down when all they want are the patents. I don't think Mojang has much in the way of patents that Microsoft would care about.

Most likely they just want to port it to Windows-based mobile devices to drive adoption (they're almost single-mindedly focusing on phones and tablets right now and really need to do everything they can just to stay in the market). It's also highly likely that they'll attempt some kind of platform-exclusive thing - either a sequel or something, but they're going to mess up their public image EVEN MORE if they do that. Which I am betting they will do, because they have a track record of really dumb marketing and being really good at screwing up their public image. They're almost to IBM levels of how-little-the-Average-Joe-actually-cares-about-them.

If it stays profitable, they'll keep maintaining it. If it stops being profitable, that's when people can start worrying.

That's a probable scenario.

Of course, theycould be trying to use it as a 'showcase' of sort, like they did years ago when tried to acquire id Software to showcase their then-new DirectX (I don't think they called it that back then. Anyone remembers?). This time, they might want to showcase their cloud prowess.

Remember Nadella's new mantra: "Mobile-first and cloud-first".

Wonder if Microsoft will pull an EA and shut it down after they buy it.


For what purpose would they spend 2.5 billion just to shut it down? Companies acquire-and-shut-down when all they want are the patents. I don't think Mojang has much in the way of patents that Microsoft would care about.

Most likely they just want to port it to Windows-based mobile devices to drive adoption (they're almost single-mindedly focusing on phones and tablets right now and really need to do everything they can just to stay in the market). It's also highly likely that they'll attempt some kind of platform-exclusive thing - either a sequel or something, but they're going to mess up their public image EVEN MORE if they do that. Which I am betting they will do, because they have a track record of really dumb marketing and being really good at screwing up their public image. They're almost to IBM levels of how-little-the-Average-Joe-actually-cares-about-them.

If it stays profitable, they'll keep maintaining it. If it stops being profitable, that's when people can start worrying.

Considering MS don't even do platform exclusives of core stuff like Office, or even release them first on Windows Phone, there seems little danger of this :)

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