I wish some one would make an android app out of this game and add multiplayer. Who owns the rights to Master of Magic?

ATARI apparently but they've shown little interest in the franchise (others have been interested but they've been unable to reach an agreement with ATARI so far). Game's source code is probably long lost so there's little hope of any form of port being made.

Has dosbox been ported to andoid? If it has, the game should at least run on it as it's dos game.

Yes, DosBox is being ported on Android : https://market.android.com/details?id=org.hystudio.android.dosbox (0.25 beta)

I tried it on a toshiba AC100 (Android 2.2 smartbook) with 2 games :
- No problems with Zork (text Rpg : no sound or complex graphics!)
- But no sound with Ultima 1 with default settings. Maybe some parameter changes should make it work

I would love it if someone savvy enough can do this.