Microsoft is in advanced talks to acquire the maker of the video-game Minecraft for more than $2 billion, people briefed on the discussions said on Tuesday. The move was intended to ensure that the popular games was available for the technology giant?s family of devices.
The details still need to be worked out, and a deal could fall through, said one of the people, who spoke on condition of anonymity. Acquiring Minecraft would give Microsoft control of an online world that has defied many conventions of the modern games business to become a success. Minecraft?s blocky graphics are crude by today?s standards, looking like virtual Lego bricks.
But unlike many start-ups purchased by big technology companies for billions of dollars, Minecraft is already a lucrative business. This year, Mojang, the privately held Swedish firm that makes Minecraft, told The Wall Street Journal that its revenue was about $360 million last year, up 38% from year before. WSJ reported the discussions with Microsoft earlier on Tuesday. Mojang was co-founded by Markus Persson, a 35-year-old programmer and game designer. Persson has said earlier that he didn?t want to sell the company or take money from outside investors.
In an era when many games, especially for mobile devices, are given away, and derive their profit from the sale of virtual currency and other items, Mojang sells Minecraft the old-fashioned way ? by charging people to buy a copy. The price varies depending on what kind of device people play the game on, ranging from $7 on mobile phones to $27 for computer versions. A version of Minecraft for Microsoft?s Xbox, which has been a top seller for the console, costs $20.
For Microsoft, the interest in a deal is motivated in large part by a desire to ensure that attractive content is available for some of its most important platforms. Minecraft is not currently available on Windows Phone, the mobile operating system that Microsoft has struggled to turn into a strong competitor to Apple?s iPhone and Google?s Android.
Minecraft has also not been adapted to take advantage of the graphical interface of Microsoft?s latest operating system for computers and tablets, Windows 8. The game is not available for purchase in the Windows Store, Microsoft?s online app store.
A spokeswoman for Microsoft declined to comment. Persson did not respond to a request for comment.
Microsoft first approached Mojang about three months ago, interested in pursuing a deal, one of the people briefed on the discussions said. Talks are continuing between them, and an agreement could be reached by the end of the month, the person briefed on the discussions said.