Microsoft Will Not Be Acquiring Discord

Microsoft Will Not Be Acquiring Discord

Bloomberg had reported last week that Microsoft was eyeing PC and video gaming chat program Discord for a possible acquisition. The $10 billion price tag seemed like a big deal for Discord which is known as the free chat program for gaming.

However, it seems this may not be going through. According to sources speaking to The Wall Street Journal, the negotiations have “ended without a deal, though it is possible they could be rekindled in the future.”

Discord had been on the lookout for a potential buyer and had even reached out to Amazon and Epic as potential candidates. Both declined Discord’s offer, so the company now seems to be exploring the possibility of an initial public offering.

While the pandemic has been bad for most businesses, it’s been great for Discord. The company had been valued at $7 billion at the end of December, all thanks to a massive spike in users doubling its total user base in a single year.

Comparing that to companies such as Capcom or 2K Games, two huge publishers which are valued in the mid $3 billion gives a very clear picture of how valuable commodity Discord has become in the past few months.

Microsoft Will Not Be Acquiring Discord
Discord | Source: Discord

Microsoft is still looking for more acquisitions, according to earlier reports. Recently they purchased Nuance Communications for $16 billion, and they also acquired Bethesda/ZeniMax for $7.5 billion. Square Enix may be next on the list who is also looking for potential buyers.

A company which has a rocky relationship with Discord is Apple who recently forced the program to block NSFW channels on iOS devices.

Just like Tumblr two years ago, Twitch was threatened with removal from the Apple App Store due to the potential of users gaining access to explicit content if they were to visit certain channels.

Where Discord is going to go is anybody’s guess right now, but one thing is for sure, the longer this pandemic goes on and has people distanced, the higher its value is going to climb.

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.