I feel that Mr. Mathew Ingram hit the nail on the head with this. Leave a comment, let’s foster some good discussion. What’s your take on this issue?
So the much-rumored acquisition of Minecraft has finally come to pass, with Microsoft buying the game’s parent company Mojang for $2.5 billion, and no doubt many people unfamiliar with the game are wondering whether the software giant has lost its collective mind. How could a single game with pixelated, low-res graphics be worth that much? It doesn’t even have spaceships! And yet, those who have seen the effect the game has on kids from nine to nineteen figure that Microsoft has effectively stolen Minecraft by paying only $2.5 billion for it.
Financially speaking, the deal looks to be within the normal range for such acquisitions, at least in this somewhat over-heated tech environment, and taking into account Microsoft’s desire to expand its Xbox gaming division. Mojang had revenue of $330 million last year and a profit of $130 million, which makes the sale price about 7.5 times revenues. Many…
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