Tomahawk, WI 09/11/2014 (Basicsmedia) – Microsoft Corporation (NASDAQ:MSFT) is reportedly in advanced talks on the possibility of acquiring indisputable gaming phenomenon Minecraft for $2 billion. In an interview on CNBC Norman Young, senior analyst at Morningstar argued that the $2 billion price tag won’t affect Microsoft’s cash balance that was approximately $86 billion as of June this year and mostly stacked outside the U.S.
The acquisition of Minecraft is expected to bolster Microsoft Corporation (NASDAQ:MSFT)’s pipeline of games that is notably known for the Xbox video game business although the space has in the recent past been’ encroached with immense competition.
Minecraft has grown to become a force to reckon with in the gaming industry, making the charts month after month as one of the top sellers.
“[…] These guys have cut a pride at themselves as being small and independent over the last few years this culturally going to be a big shift for them,” said Mr. Young.
The acquisition of Minecraft highlights Microsoft Corporation (NASDAQ:MSFT)’s CEO, Satya Nadella, vision of focusing more on the mobile strategy, as well as windows phone and other platforms. Minecraft with over 100 million users makes it one of the most popular games, consequently justifying its price tag of $2 billion according to Young.
“[…] The IP side of this equation is pretty important too. The fact that this is a gaming platform that can be’ played on Android on iOS on PC on the different consoles […] They kind of want be able to offer different games and different strategies across the different platform even if they are not the platform,” said Mr. Young.
Microsoft Corporation (NASDAQ:MSFT) is not new to acquisitions especially on the gaming side of business having bought Bungie for the sole reason of being able to use the Halo game to popularize its Xbox console. Young expects the company to benefit a great deal with Minecraft acquisition especially if it can leverage the IP side, which he thinks has a huge potential for growth going forward.
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