Microsoft reportedly in talks to acquire Discord for more than USD 10 billion.
Microsoft had been reportedly in talks to acquire Discord for more than USD 10 billion.
Discord was a free service platform that allowed users to communicate through text, video, and voice. The said platform also offered a USD 9.99 monthly subscription service, allowing users to access additional features.
Yugatech reported that Discord had grown during the coronavirus pandemic, with over 100 million active users and 13.5 million active servers every week.
According to a report on VentureBeat, Discord was going through a sales process of more than USD 10 billion after different potential buyers expressed interest. The said platform had also been reportedly having signed an “exclusive acquisition” discussion with one party, inferring a settlement could be close.
However, Bloomberg’s sources stated that the deal wasn’t imminent, with one person saying that the said platform was more likely to go public than sell itself.
“Microsoft possibly acquiring Discord makes a lot of sense as it continues to reshape its gaming business more toward software and services. There’s a big opportunity to bundle Discord’s premium offering, Nitro, into the Game Pass service to drive more subscriptions from the last reported 18 million,” Bloomberg Intelligence Analyst Matthew Kanterman said.
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Also, Bloomberg mentioned that Discord reached out to Microsoft in order to weigh interest, and Xbox chief Phil Spencer had been mentioned to be talking to the company, according to one of its sources.
As cited by Bloomberg, Discord’s success had also translated financially, where the company raised USD 100 million at a USD 7 billion valuation last 2020.
VentureBeat also reported that any potential buyer with over USD 10 billion on hand to acquire Discord was likely to be a “really huge game company”, but more likely a platform owner like Google, Microsoft, Twitter, or Amazon. On the other hand, Bloomberg identified Amazon and Epic Games as firms that had also held talks with Discord in the past.
Meanwhile, representatives for Discord and Microsoft declined to comment as of this writing.
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