Deal of the Week: to Buy Creator of for $2.5B

Announcement Date  September 15, 2014 Acquirer  Microsoft Corporation (Nasdaq: MSFT) Acquirer Description  Develops, licenses, markets, and supports software, services, and devices worldwide  Founded in 1975 and based in Redmond, Washington Acquirer Financial  Mkt Cap: $382.7 billion  LTM EBITDA: $32.1 billion Statistics  EV: $319.3 billion  LTM EV / Revenue: 3.7x  LTM Revenue: $86.8 billion  LTM EV / EBITDA: 9.9x Target Company  Mojang Target Description  Swedish developer that created Minecraft, the world‐building computer game Price / Consideration  Price: $2.5 billion  Consideration: Cash Target Advisor  JPMorgan Chase Rationale  Games remain one of the biggest categories of apps, including those for mobile devices. Adding one of the most popular offerings could help bolster Microsoft’s Windows series of devices, including phones and tablets  “Gaming is a top activity spanning devices, from PCs and consoles to tablets and mobile, with billions of hours spent each year,” , Microsoft’s chief executive, said in a statement. “Minecraft is more than a great game franchise — it is an platform, driven by a vibrant community we care deeply about and rich with new opportunities for that community and for Microsoft.” Of Note  Minecraft, focused on building elaborate virtual structures, has drawn a huge and dedicated following around the world  As part of the deal, employees of Mojang will join Microsoft Studios, which already publishes games like the blockbuster  Minecraft’s creator, , will leave the company after the deal closes  Taking the lead in the negotiations was Carl Manneh, Mojang’s chief executive, who will leave along with his fellow co‐founders, Mr. Persson and Jakob Porser  Mr. Persson is expected to make nearly $1.8 billion from the deal

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