Microsoft in talks to buy Discord for $10 billion
Microsoft is reportedly in talks with Discord to buy the gaming-centric voice and chat platform for a whopping $10 billion. According to unnamed sources privy to Bloomberg, Xbox chief Phil Spencer is allegedly involved in the talks. The news comes on the heels of recent reports stating Discord itself is looking at a sale for around the same price.
Epic Games and Amazon also vying to acquire Discord
Microsoft might not be the only company negotiating with Discord. The Bloomberg report also names Epic Games and Amazon among companies that have had talks with Discord. However, a VentureBeat report reveals that Discord has signed an exclusive acquisition discussion with an unnamed party. This gives some credibility to the Microsoft purchase and hints that the deal could be in an advanced stage.
Discord could even take Roblox's route and go public
On the flip side, Bloomberg's sources aren't entirely confident that the deal will go through. The publication was informed that there is a chance that Discord could leave the money on the table to pursue the IPO route. The company has the option of going public either through by floating an IPO or taking the direct listing route like Roblox did recently.
Discord isn't profitable yet, despite 140 million monthly active users
Discord boasts of about 140 million monthly active users and generates $130 million in yearly revenue. The company isn't profitable yet, but its last valuation pegged it at $7 billion following a $100 million funding round. While Discord is free, it charges users $9.99/month for better server features, generous upload limits, higher resolution screen sharing, and cosmetics such as sticker and emoji packs.
What exactly is Discord? Gaming-centric communications platform
Discord started off as a VoIP solution for gamers, targeting Multiplayer Online Battle Arena (MOBA) and other competitive online gamers who sought a better means to communicate with team members. However, since then it has blossomed into a messaging and streaming platform that allows technically competent users to set up highly customizable discussion servers. More recently, it has dabbled in digital video game distribution.
