Last night, the Intertubes were agog with news of Microsoft’s rumored purchase of Mojang AB for the incredible 10-figure sum of $2 billion USD.
That, is a lot of money, anyway you slice or dice it.
And, it seems like a lot.
As expected, today, I glanced at a couple of headlines from a few uninformed bipeds supposedly of our species, condemning the rumored deal, calling it outrageously expensive.
Why, I ask?
Why?
Let’s look at the financials, shall we?
Mojang, the developers of Minecraft, have sold 54 million licenses of their flagship product in the past four years. For actual money.
They reported revenues of about $288 million last year, with income exceeding $120 million, both in US dollars. Moreover, Mojang’s largest expense is the more than $100 per annum paid to Notch Persson for licensing Minecraft.
Finally, Minecraft is a true cross-platform play, something Microsoft needs as it transitions away from a Windows-only focus.
Put together, Minecraft has the potential to be an immediate cash cow for Microsoft.
A venture that spews forth $220 million on $290 million in sales is delivering margins that are basically out of this world. And if Notch is motivated to sell, and to sell to Microsoft, for that matter, then $2 billion for it is almost a steal.
However, some people think that this deal is too costly for Microsoft?
Perchance, wouldn’t it be the same financial bantamweights that lauded the purchases of both What’sApp and Oculus Rift by Facebook?
Remind me, if you will, of the total combined revenues of both those companies?
None?
Okay, let’s not belabor that point.
Would you then remind me of their combined incomes?
Again, do you say “Z-E-R-O”?
Zero is correct.
I know some folks exist just to hate on Microsoft.
I get that.
I don’t understand it, but I get that it’s their raison d'être.
However, in times like this, where the financial facts are evident, I just wish they’d STFU, and stay out of my stream of consciousness.
Haters may want to hate, but they need to let that haterade percolate in their melons.
Not publicly, in this situation.
