Microsoft share price down, buys Minecraft developer Mojang for $2.5bn

Microsoft Corp, the worlds biggest software maker, announced it has reached an agreement to acquire the “celebrated” Swedish game developer Mojang and its iconic Minecraft franchise for $2.5bn.

The move follows vibrant speculation and some outcries by the most loyal of Minecrafts cult following, and is the biggest deal by Microsofts new chief executive since he took the helm in February.

“Minecraft is more than a great game franchise – it is an open world platform, driven by a vibrant community we care deeply about, and rich with new opportunities for that community and for Microsoft,” said Satya Nadella, CEO, Microsoft.

The bloc-based lego-style building platform has nurtured an immensely massive and devoted fan base with its retro-looking design and complete creative freedom. Some players have even managed to create fully functional hard drives or complete replicas of cities and even countries.

The move did result in some controversy, though, as Markus “Notch” Persson, Mojangs founder has been critical of Microsoft, and was seen as an indie bulwark against corporate interests.

Though Notch was seemingly apologizing for the sale on his blog, Mojangs outgoing management was optimistic and reassuring to its crowd.

“The acquisition by Microsoft brings a new chapter to the incredible story of ‘Minecraft,’” said Carl Manneh, CEO, Mojang. “As the founders move on to start new projects, we believe the high level of creativity from the community will continue the game’s success far into the future.”

Minecraft does promise a lot to its new owner, and would likely turn out hefty positives. The game has sold over 54 million copies and is the most popular online game on Xbox, and the top-paid app for iOS and Android in the US.

“Not only is it profitable, but it continues to increase in profits years after its release, largely due to the passionate fan base that invests in building out their own Minecraft worlds,” Forrester analyst James McQuivey said for the BBC.

Microsoft Corp. was down 0.61% by 14:23 GMT at $46.41 per share, valuing the company at $382.41bn. The stock is up 40.51% on an annual basis. According to the Financial Times, 27 analysts offering 12-month price targets for Microsoft Corporation have a median target of $49.00, with a high estimate of $56.00 and a low estimate of $34.00.