In 2014, Microsoft made headlines with its acquisition of Minecraft for an impressive .5 billion. At the time, this hefty price tag raised eyebrows across the gaming industry, yet it has since proven to be a masterstroke, as Minecraft has expanded its player base into the millions and generated billions in revenue. Today, it stands as one of Microsoft’s most valued assets, but the journey to ownership was not without its twists and turns.
Missed Opportunities in the Gaming Landscape
Recently, former Activision CEO Bobby Kotick shared insights on Ari Emanuel’s podcast, shedding light on the behind-the-scenes negotiations that nearly saw Minecraft in Activision’s portfolio instead of Microsoft’s. According to Kotick, Activision was on the verge of acquiring the beloved game, but the deal fell through due to unforeseen complications.
“I had to spend five days in Stockholm with [Markus ‘Notch’ Persson], the guy who founded the company. We offered him .5 billion. And he said, ‘By the way, I’m quitting, and my top leadership guys are all quitting.’ And they only had 30 employees at the company. Like, we can’t run your company.”
In this candid reflection, Kotick revealed the challenges faced during the negotiations. The prospect of acquiring Minecraft was tantalizing, but the impending departure of Notch and his leadership team posed a significant hurdle. With only 30 employees at the time, the viability of running the company post-acquisition was questionable.
Shortly after Kotick’s discussions with Notch, Microsoft stepped in with a more enticing offer of .5 billion. Notch accepted, leading to a pivotal moment in gaming history that has since shaped the landscape of interactive entertainment.