Jim Cramer on Why Microsoft Should've Bought Take-Two Interactive - TheStreet

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. 


Take-Two Interactive Software TTWO data by YCharts

Image placeholder title

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

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS had a position in MSFT.