How Much is Mojang Worth?
Mojang, the Swedish game development company behind the globally popular Minecraft game, was acquired by Microsoft in 2014 for a staggering $2.5 billion. But what led to this massive valuation, and how much is Mojang worth today?
Early Days and Rise to Fame
Mojang was founded in 2010 by Markus "Notch" Persson, Carl Manneh, and Jakob Porser. The company's early success was largely driven by the popularity of Minecraft, a sandbox video game that allowed players to build and explore 3D blocky worlds. The game's unique gameplay and creative freedom quickly gained a massive following, and by 2011, Minecraft had sold over 1 million copies.
Rapid Growth and Expansion
As Minecraft's popularity continued to soar, Mojang expanded its team and operations. The company established offices in Stockholm and opened a new studio in Seattle. Mojang also explored new revenue streams, including merchandise sales, licensing agreements, and real-money transactions.
Acquisition by Microsoft
In September 2014, Microsoft announced its acquisition of Mojang and Minecraft for $2.5 billion. The deal marked one of the largest gaming industry acquisitions in history, and it gave Microsoft a significant foothold in the gaming market.
Mojang's Worth Today
As a subsidiary of Microsoft, Mojang's financial performance is no longer publicly disclosed. However, we can estimate the company's worth based on Minecraft's continued success and Microsoft's gaming revenue.
In 2020, Microsoft reported gaming revenue of $14.3 billion, with Minecraft being a significant contributor to this figure. Assuming Minecraft generates around 20-30% of Microsoft's gaming revenue, we can estimate Mojang's annual revenue to be around $2.8-4.3 billion.
Using a conservative estimate of 5-7 times revenue multiple, Mojang's worth today could be around $14-30 billion. This is a rough estimate, as the company's exact financial performance and valuation are not publicly disclosed.
Conclusion
Mojang's rise to fame was fueled by the massive success of Minecraft, and its acquisition by Microsoft marked a significant milestone in the gaming industry. While we can't pinpoint an exact figure, Mojang's worth today is likely in the tens of billions of dollars, solidifying its position as one of the most valuable gaming companies in the world.