Microsoft In Talks To Buy Discord For $10 Billion

Microsoft may buy Discord in yet another billion-dollar acquisition. The owner of Windows is said to be in talks with executives of a communication service focused on games about acquiring the company for around US$ 10 billion.

Discord’s owners are open to selling the service, which grew during the pandemic and received US$ 100 million in investments to expand in 2020. In addition to Microsoft, companies like Epic Games and Amazon would be interested in the platform.

One of the companies is in “advanced conversations” about an acquisition, according to the information. Bloomberg reports that this company could be Microsoft, which would have included Phil Spencer, head of Xbox, in negotiations.

With 140 million monthly active users and revenues of approximately US$ 130 million, Discord is a top-rated communication service in the gaming market. The platform has voice and video chats. Also, you will get a group system that supports robots to automate tasks.

Microsoft has partnered with Discord on Xbox in recent years, but the platform’s chat services have not yet been implemented. Xbox Game Pass subscribers have already received Discord Nitro subscription codes with Xbox Live integration.

Public Offering

There are reports that Discord may reject the sale and go another way, even if Microsoft stands out in the alleged negotiations. The company is also studying the possibility of going public on the stock exchange.

According to Bloomberg, Discord may issue shares to capitalize on its momentum of growth. If the idea goes forward, plans for a sale to Microsoft will be cancelled.

The possibility of a public offering could open the door for Discord’s owners to increase the sale price of the platform. This is because the platform was valued at US$ 7 billion last year. The owner of Windows would still have a large margin of profit to offer in the business since Microsoft is willing to disburse up to US$ 10 billion.

 So far, none of the companies involved has officially commented on the matter.

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