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ErikJ

(6,335 posts) Mon Mar 23, 2015, 02:21 PM Mar 2015

Microsoft bought Minecraft as a tax dodge for its $93 billion overseas

Inside The Post-Minecraft Life Of Billionaire Gamer God Markus Persson

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“It doesn’t compare to other hit games,” says Ian Bogost, a professor at the Georgia Institute of Technology who studies videogames. “It compares to other hit products that are much bigger than games. Minecraft is basically this generation’s Lego or even this generation’s microcomputer.”

In this virtual world, Persson–or rather his Internet persona, a loudmouthed fedora-wearing crank named Notch–became a deity-like figure to millions of gamers, establishing and clarifying the rules with Zeus-like authority. But Persson is anything but an opinionated extrovert. Face-to-face he’s polite, plainspoken and private. (He rarely talks with the press.) Over time the demands and expectations of fans looking to Notch to keep the monster hit going turned him into a self-conscious wreck.

So three months ago Persson pushed it all away, completing the sale of Minecraft to Microsoft MSFT +0.42% for $2.5 billion in cash. His 71% stake in Mojang, the company behind Minecraft, made him a new, and particularly flush, member of the FORBES World’s Billionaires list.

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The motivator for Microsoft, ultimately, was a tax dodge. The software giant was sitting on a $93 billion overseas cash pile that it couldn’t repatriate without paying Uncle Sam his share.

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http://www.forbes.com/sites/ryanmac/2015/03/03/minecraft-markus-persson-life-after-microsoft-sale/

6 replies

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Microsoft bought Minecraft as a tax dodge for its $93 billion overseas (Original Post) ErikJ Mar 2015 OP

93 billion dollars ? olddots Mar 2015 #1

No it wasn't. Microsoft and other companies are in no hurry to spend money held outside the country. DesMoinesDem Mar 2015 #2

US tax law is complex. ErikJ Mar 2015 #3

No. It doesn't reduce their taxes at all. The purchase had no affect on their taxes. DesMoinesDem Mar 2015 #4

You sure? Businesses can write off almost any purchases. ErikJ Mar 2015 #5

Yes DesMoinesDem Mar 2015 #6

olddots

(10,237 posts)

1. 93 billion dollars ?

Reply to ErikJ (Original post)

Mon Mar 23, 2015, 02:26 PM

Mar 2015

life is weird .

DesMoinesDem

(1,569 posts)

2. No it wasn't. Microsoft and other companies are in no hurry to spend money held outside the country.

Reply to ErikJ (Original post)

Mon Mar 23, 2015, 04:05 PM

Mar 2015

If Microsoft didn't buy Minecraft would they have a larger tax bill? Nope. How can it be a tax dodge if it doesn't reduce their taxes one cent?

ErikJ

(6,335 posts)

3. US tax law is complex.

Reply to DesMoinesDem (Reply #2)

Mon Mar 23, 2015, 04:13 PM

Mar 2015

They can probably reduce the $2.5 billion from their total bcuz its a foreign investment. If thats the case. I wonder why they dont all go on a buying binge of foreign companies.