NEW YORK (TheStreet) -- Microsoft (MSFT) - Get Report bought Mojang for $2.5 billion in September to get its Minecraft video game. Jim Cramer, the co-manager of the Action Alerts PLUS portfolio, which has Microsoft as a holding, said Thursday the company made the wrong move.
Microsoft should have bought Take-Two Interactive Software (TTWO) - Get Report , Cramer said. Take-Two Interactive beat on earnings and revenue expectations Wednesday and shares of the $1.9 billion video game producer are up over 8% today.
"This is an amazing, well-run company," Cramer said of Take-Two on CNBC's "Cramer's Stop Trading" segment, and CEO Strauss Zelnick has done a great job leading the company.
Video games are very popular among the younger generations, he said, and they don't seem to be going away anytime soon. So if Microsoft wanted a video game company, it should have been Take-Two.
Buying Take-Two wouldn't have cost Microsoft any more than buying Mojang, Cramer asserted. Instead of getting Minecraft in the deal, Microsoft would've inherited a much larger portfolio of games including Borderlands, Grand Theft Auto V and NBA 2K15, among others.
-- Written by Bret Kenwell
At the time of publication, Cramer's Action Alerts PLUS had a position in MSFT.