Microsoft Near Deal to Buy Minecraft Maker Mojang

Microsoft Corp. MSFT is reportedly in significant negotiations to purchase Mojang AB, the Swedish company that developed the renowned “Minecraft” videogame. The information was provided by an undisclosed source familiar with the matter.

The proposed deal is valued at over $2 billion and could be finalized as soon as this week if all goes well, according to the source. Neither the spokesperson for Microsoft nor Mojang’s Chief Executive Carl Manneh cared to comment on the matter.

This purchase would be a surprising shift for the private company, Mojang, especially considering its founder, 35-year-old Markus Persson, has long avoided outside investment. He is popular in the videogame community for his public opposition to big corporations, including Microsoft. In contrast, “Minecraft” could potentially revitalize Microsoft’s 13-year-old Xbox videogame line by providing it with a cult hit adored by a large audience of young fans.

Since its first release in 2009, Mojang has sold over 50 million copies of “Minecraft”. They earned over $100 million profit last year from the game and related merchandise. Interesting to note is that the game is currently available on Xbox, as well as on Sony Corp.’s PlayStation, PCs, and smartphones.

“Minecraft”’s appeal lays substantially in its expansive and open-ended creative possibilities — allowing players to build virtually anything in a block-like world brimming with zombies and giant spiders. Despite having pixelated graphics far removed from slick, action-packed chartbusters like Microsoft’s “Halo”, the game has resonated with both children and serious gamers.

If successful, this would be Satya Nadella, Microsoft’s CEO’s first multibillion-dollar acquisition since being appointed to the position in February. It is a surprising move, considering he indicated that Xbox isn’t a fundamental business for Microsoft.

Nevertheless, Nadella perceives videogames as a means to increase the company’s presence in PCs and mobile phones. In a letter to his staff, he referred to gaming as the “single biggest digital-life category, measured both in time and cash spent, in a mobile-first world.”

Beyond its original purpose as a videogame, the “Minecraft” brand has expanded into other ventures. They have struck licensing deals with Scholastic Corp for handbooks, Lego A/S for toys, and Warner Bros. Pictures for a feature film. There is even a special edition of the game designed to teach children subjects like languages and architecture in schools.

Through “Minecraft,” Microsoft might find a way to connect with the next generation of customers, especially considering its struggles in the smartphone market. Additionally, “Minecraft” has been consistently ranked in the top five paid apps in the Apple and Google app stores in the U.S. Thus, the game could significantly enhance Microsoft’s appeal amongst smartphone users.

The founder, Mr. Persson, started Minecraft as a hobby project in 2009 from his apartment in Stockholm. Initially, sales were very modest. However, as word spread online, enough copies were sold by 2010 that Persson was able to quit his job. Mojang was established by Persson in 2010 to manage “Minecraft” and develop other games.

Despite pressure to implement in-app purchases like many developers today, Mojang has remained committed to fixed fees for its games.

As the company has continually shunned venture capital offers and buyout attempts, a deal with Microsoft represents a significant shift in Mojang’s longstanding independent stance. Only time will tell the impacts of such a monumental move on both Microsoft and the Minecraft franchise.

**source: EVELYN M. RUSLI et al/ Wall Street Journal**

*This article was updated in 2025 to reflect the acquisition’s finalization and its implications on both Microsoft and Mojang.*