Why Microsoft Corporation (NASDAQ:MSFT) is reportedly close to buying Mojang AB, the maker of the hit video game “Minecraft,” for over $2 billion was discussed in a report on Bloomberg’s “In The Loop”.
According to Bloomberg Intelligence’s Anurag Rana, Microsoft Corporation (NASDAQ:MSFT), if it does go through with the acquisition of Mojang AB, will snatch a company that makes hundreds of millions of dollars every year.
The reason why the Microsoft Corporation (NASDAQ:MSFT) is interested in the company that makes “Minecraft” is because of the Xbox, Rana said.
“I think Microsoft wants to make sure that [the]Xbox remains in the middle of the household and becomes the most important device as we move into the ‘Internet of Things’ and devices become more connected in the house,” Rana explained.
According to the Bloomberg Intelligence analyst, the company does not want to lose its grip on the hardware and software combination that is the future of the connected home. Furthermore, the analyst said that at a later part of the discussion that the company has about $86 billion in cash with 90% of this outside of the U.S.
Furthermore, as pointed out by the show’s host, Betty Liu, Microsoft Corporation (NASDAQ:MSFT), is also aiming to gain eyeballs for their different products with the possible Mojang AB buyout.
Rana said that the “Minecraft” game is already available on the Xbox and the company will not gain new Xbox users with the acquisition, but it will ensure that these games are available on its platforms in the future. The duo pointed out that the game is not available on the Windows Phone platform but with the possible acquisition, it will likely be deployed on Microsoft’s mobile platform.
Valueact Capital managed by Jeffrey Ubben reported by the end of the second quarter of this year that it was a Microsoft Corporation (NASDAQ:MSFT) shareholder. The firm reported about 74.24 million shares in the tech giant, a stake valued at about $3.1 billion and makes up 22.88% of the firm’s whole portfolio.