Microsoft announced this week that it's buying hugely popular game franchise Minecraft for $2.5 billion. For that money, Microsoft gets rights to the game and ownership of its Stockholm, Sweden-based development studio, Mojang. It doesn't retain the company's founders or Minecraft's infamously outspoken creator, Markus "Notch" Persson.
Does that sound like a lot, $2.5 billion? Well, it is in human dollars, but not so much when you're Microsoft and you've got $85 billion in "cash, cash equivalents and short-term investments." Regardless of the fact that this week's deal only cost Microsoft around 3 percent of that, here's the real kicker (in the form of a statement from Microsoft): "Microsoft expects the acquisition to be break-even in FY15 on a GAAP basis." Woof, that's a doozy of a sentence right there.
Here's the translation: Microsoft expects the purchase of Minecraft/Mojang to make it a lot of money. And that is why Microsoft bought Minecraft.
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