$ 10 billion business
Microsoft is currently in talks to acquire Discord, a video game chat community that will cost more than $ 10 billion.
According to the anonymous informant, no deal is imminent. It is more likely that Discord will go public than sell itself, the informant said. Representatives from Microsoft and Discord declined to comment. VentureBeat reported on Monday that Discord was in sales talks.
Discord
San Francisco-based Discord is best known for its free service that allows gamers to communicate using video, voice, and text. People stuck at home during the pandemic have also increasingly used the technology for study groups, dance classes, book clubs, and other virtual gatherings.
It has more than 100 million monthly active users and has designed its communication tools to make it more of a “place to talk”.
Microsoft
Microsoft, which tried to buy the TikTok social media app last year and had talks about acquiring Pinterest, has been looking for assets that have access, according to informants familiar with the company’s deliberations to provide thriving user communities.
Microsoft’s Xbox business has also expanded the suite of subscription perks it is offering as part of its Game Pass offering.
“Microsoft’s possible acquisition of Discord makes a lot of sense as the company continues to transform its gaming business towards software and services,” said Bloomberg intelligence analyst Matthew Kanterman.
“There’s a great opportunity to bundle Discord’s premium offering, Nitro, into the Game Pass service to get more subscriptions from the last reported 18 million.”
