Microsoft in Talks to Acquire Discord for Over $10 billion: Report

Microsoft in Talks to Acquire Discord for Over $10 billion: Report

It looks like Discord might have found a new home with the great grandads of modern computing.

According to a Bloomberg report, Microsoft is in talks to acquire Discord, the gaming-focused chat software for over $10 billion with Xbox chief Phil Spencer at the helm of the deal.

While there is no confirmation on this development at present, VentureBeat did report that Discord was in the market for a $10 billion plus sale after multiple buyers expressed interest. Additionally, it is rumoured that the company has signed an exclusive acquisition discussion with one party, which suggests a deal could be close.

But don’t get too excited yet; the Bloomberg report outlines that Discord is more likely to go public than seek an acquisition. It also notes that Discord has had similar talks with Amazon and Epic Games in the past.

Discord is a community-focused chat service and digital distribution platform that’s used most by gamers. In a post-covid world, the free service has found many users in the non-gamer user base who use it for more “general” purposes like teaching classes, transferring data, livestreams and so on; all in-line with Discord’s recent rebrand.

Microsoft In Talks To Acquire Discord For Over $10 billion: Report
Discord | Source: Discord

As of December 2020, the service could host 140 million active users per month and doubled its valuation from $3.5 billion to $7 billion. While the company made over $130 million in revenue last year – mainly due to its paid Nitro subscription feature for $9.99 – The Wall Street Journal says the company still isn’t profitable.

If this deal goes through, it would be Microsoft’s second major recent acquisition after ZeniMax Media Inc., Bethesda Softworks’ parent company, for $7.5 billion.

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About Microsoft

Founded by Bill Gates and Paul Allen in 1975, Microsoft is an American MNC that creates, licenses, supports and sells computers, software, electronics, video games, and corresponding services.

Some of the most popular titles in the world, like Age of Empires, Forza, Gears of War, Halo, Minecraft, Microsoft Solitaire, Microsoft Flight Simulator, and State of Decay, have been developed and published by Microsoft.

Microsoft is also known for establishing the famous console brand Xbox, along with the video game subscription Xbox Game Pass.