Statistics have shown that in the last two years, gamers have invested over 2 billion hours on Minecraft of Microsoft’s (NASDAQ:MSFT) Xbox 360 eventually leading to Microsoft (NASDAQ:MSFT) (MSFT -0.96%) making the relationship official. A deal worth 2.5 billion dollars was signed and Microsoft (NASDAQ:MSFT) bought Minecraft maker Mojang. This is Microsoft’s (NASDAQ:MSFT) greatest acquisition, under their new CEO Satya Nadella.
Nadella further pointed out that Minecraft isn’t just a great franchise, its a world full of new opportunities that gives us the freedom to cater to our community and Microsoft (NASDAQ:MSFT) itself. Gamers now a days spend billions of hours online each year, on their PCs, tablets, consoles or mobiles.
Kim Forrest, senior equity analyst at Fort Pitt Capital Group, also a former software engineer, discussed that Microsoft (NASDAQ:MSFT) always had its cash flow from enterprise sales, with consumers as an icing on top. It is Nadella’s courage to go after big markets that impressed him and may prove to be a more self-aware venture for Microsoft (NASDAQ:MSFT). After laying off hundreds of employees after its acquisition of Nokia, this can prove to be a positive boost within its employees. The cost of laying off an streamlining redundancies cost Microsoft (NASDAQ:MSFT) a great deal but this new deal proves that it is prepared to go on towards its goals and new strategic mission with full gusto.
As the rumors of the acquisition hit the market, Microsoft (NASDAQ:MSFT) shares went up 0.2% on Wednesday but fell by 0.8% to $46.35 on Monday trading. It is believed that investors are hesitant of Nadella’s approach to cater to customers instead of the enterprise businesses, being hesitant is natural as now Microsoft (NASDAQ:MSFT) would be catering to customers it knows little about. The Mojang team expect Microsoft (NASDAQ:MSFT) to close the deal towards the end of 2014 and to break even by fiscal 2015.
Erik Kain, a contributor of FORBES, analysed the cultural difference of Microsoft (NASDAQ:MSFT) and Mojang. He pointed out that even though on one end Microsoft (NASDAQ:MSFT) has a controlled PR and like other giant firms, collects data on its users, Mojang has a totally different approach and they don’t collect user data or interact with its fans online at all. Previous records have shown that Minecraft has been downloaded over 100 million times on PCs alone. These figures seem promising to Mojang CEO Carl Manneh. He stated that the acquisition by Microsoft (NASDAQ:MSFT) only enhances the story of Minecraft. As the brains merge now, only an increased level of creativity and success is to be expected.
Mojang directly communicated to its fans through its website assuring them that the deal is for real and even though change is always met with hesitation, they still expect acquisition to work in their favour. New figures emerged on FORBES, indicating that this deal would make Markus Persson the world’s newest and youngest billionaire. But rumor has it that Markus and his two co- founders would not be with Microsoft (NASDAQ:MSFT) any longer.