US technology giant Microsoft said it will buy 'Minecraft' video game developer Mojang for £1.5bn.
The deal, which will see Microsoft acquiring Stockholm-based Mojang, is expected to be finalised by the end of this year with the acquisition completed in 2015.
'Minecraft', which lets users build in and explore a virtual world, has been downloaded 100 million times on PC alone since its launch in 2009. It is the most popular online game on Microsoft's gaming console Xbox, and the top paid app for Apple's iOS and Google's Android operating system in the US.
Microsoft is primarily known for business software such as Word and Outlook. The acquisition of Mojang will help the tech giant expand its gaming division, which also includes game franchises such as the 'Halo' shooter game and 'Forza' racing game.