Deal of the Week: Microsoft to Buy Creator of Minecraft 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,” Satya Nadella, Microsoft’s chief executive, said in a statement. “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.” 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 Halo Minecraft’s creator, Markus Persson, 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 [email protected] www.pillarsofwallstreet.com .