Rumour confirmed: Microsoft Purchase Minecraft for $2.5B (Post#122)

Considering all the Minecraft toys we now own, stickers, shirts, Lego, etc. My son just discovered the toys a few weeks back, so he already spent over $75 on the figures and wants to spend almost the same for some of the new ones. I see the larger picture to this, it is a great buy when you consider just how large the IP is getting. Parents at school are always talking about it, kids have the backpacks and lunch boxes, etc.

 

Yeah thats the best part (though it doesnt have to be games)
I can see him spending his money on something interesting (like elon musk/google guys) than most other billionaires

 

Still don't understand why most here still thinks this is to fortify their Xbox division. It will benefit, but that's not reason why I think they're buying them. They're getting the next hot IP & everything that goes with it. If MS wanted to fortify their 1st party Xbox games they would have spent less money on a totally unknown up & coming Indie studio. Even Notch is rumored not going to Microsoft. I'm sure he will rather try to start over to create something totally new.

Tommy McClain

 

Its rumored from articles that Notch would stay on during the transition and that he went to MS . He seems to have a great relationship with him. So they may be able to get his next project anyway .

I'm not sure how minecraft would help windows phone or surface. I guess they could offer it free pre installed ? Maybe do a 6 month head start or something on those for minecraft 2 ? Then had like DLC packs come out earlier on their platforms ?

I think they would need more than just minecraft to make this work. They would need to release dozens of high quality games a year exclusive or timed exclusive for their moble platforms .

That's why something like Capcom would make more sense to me. They already produce mobile games and they also make triple A titles.

Heck dumping 10B or so on Blizzard would also make sense . WOW is basicly playable on mobile phones at this point and so would star craft. They also have their card game.

 

I agree with Tommy. Just because the deal was brokered through Phil's relationship, doesn't mean an acquisition of this sort is going to be just related to XBOX. Nadella is all about cloud first, and you can see fits here, and remember that the crown jewels of Microsoft software, Office, is available on a subscription basis on non-MS platforms.

As for the money pool, in essence these overseas deals are somewhat "free" because of the difficulty in bringing the overseas cash back to the US without incurring large tax penalties. Apple recently raised another $17B in US debt to avoid bringing overseas cash reserves back to the US and incurring a 35% tax penalty when doing so.

 

Ha ha, you can call it a 'difficulty', I call it tax evasion. But it does make you wonder if you need a different tax system (and by the way, our country is pretty high up on the list of countries that help enable such a scheme, so I'm well aware of our contribution to the problem)

 

I don't follow; because the deal wasn't in the USA it was a "free" ? Are are you suggesting Microsoft's operations outside the USA don't use money as currency to cover operating costs and pay expenditure. What are they using, love and rainbows?

Microsoft may well be paying the equivalent of $2/2.5Bn in Euros or pounds sterling, but as a global company that's still $2/2.5Bn they have less than they had before. It's not free.

 

I think it would be a great title for Microsoft to use to help launch an online subscription gaming service. It will work on every device but you must subscribe. Along with other Microsoft games.. Halo etc..

 

You realise you can play Minecraft for free, right? And that even if you buy it, it's pretty cheap. I don't see that move ending well

 

The cash is accumulating because the operations are generating more cash flow than expenditure, but they don't want to bring it back because of the tax, hence it just keeps accumulating. They tend to use these war chests as acquisition pools (like the Skype deal previously mentioned).

 

Microsoft wouldn't want to bring this cash home, regardless. Tax is a minor reason but the bigger reason is that any international company does not want their capital tied to a single currency and economy. Do that and that economy tanks, you're suddenly worth a whole lot less in real terms.

 

Not really it is called avoiding double taxation. You have to pay taxes in the country where your product is sold and where overseas operations exist. If you bring that money back into your country you are then taxed by your country in addition to the taxes you've already paid on that revenue.

There is no such thing as tax free revenue for corporations unless their overseas operations are in a country which has no taxes in the first place (I don't believe any exist).

Hence, it is all about avoiding unnecessary taxation. Things operate slightly differently in EU participant country due to the EU attempting to make the region into a homogenous region to do business within (similar to the US with states). But even then you have situations where you are taxed on sales in another country as well as taxes if you bring the cash generated there back into your home country.

Regards,
SB

 

You should research that answer a little better. Apple paying maybe as little as 1,5% in taxes over 102 billion 'off-shore' cash, and it is by no means the only company that knows how to use various tax havens.

 

Business Economics and Tax Avoidance/Evasion doesn't really belong here people.

 

Is there any new news on the buy?
Is it real or was it just speculation?

 

Supposedly tomorrow. You can't buy companies on the sabbath, because as God said to Moses, "thou shalt not buy minecraft on thy day of rest".

Sent from my iPhone using Forum Runner.

 

God thinks the sabbath is on a sunday

 

My lack of knowledge all things religion busted! Sounded good, tho!

 

Perhaps you dont have a penis? If so then you are excused
Due to the nature of proverb Deuteronomy 23:1
Which would certainly limit you in learning things of a ecclesiastical nature

 

I didn't understand any of that but I'm giving you a metaphorical look reserved for those who spill my pint.