Microsoft in talks to acquire Discord, chat app for gamers, for $10 billion


LAST UPDATED: March 23, 2021, 5:32 p.m.

New Delhi (Anish Yande): Microsoft is in talks with Discord, a social media company for gamers, for an acquisition amounting to $10 billion. The social media company had held talks with several potential buyers including Microsoft. The talks between Microsoft and Discord have been held as revenues from gaming have grown rapidly during the pandemic.

Discord in talks with Microsoft:

Discord is valued at $7 billion as of December 2020. The social media app users on Discord organize group activities such as games, audio discussions, and virtual gatherings. The app hosts communities related to pop culture, music, politics, and others.

The social media firm currently has more than 100 million monthly active users. Discord has raised more than $600 million in funding over the past five years. 

The tech giant has held preliminary talks with Discord and according to people involved in the discussions state that the deal is not imminent. Microsoft has recently finalized its acquisition of ZeniMax Media for $7.5 billion. ZeniMax Media owns Bethesda Studios, a prominent game developer with several popular gaming franchises. 

Microsoft also owns Mojang, the game studio which developed the popular Minecraft series of games.

Microsoft previous acquisitions:

Previously, Microsoft had completed acquisitions of GitHub, and LinkedIn, which are leading online communities for recruitment and careers.

The tech giant was also looking to acquire the U.S. operations of the short-video app TikTok in 2020, following threats by President Trump to ban the app unless its U.S. operations were sold off.

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However, Bytedance opted for Oracle as the app’s technology partner for its U.S. operations, rejecting the bid by Microsoft. 

Discord was founded in 2015 by two programmers and entrepreneurs, Stan Vishnevskiy and Jason Citron. The platform was designed for gamers to chat while gaming. The primary revenues of the company are from selling subscriptions for a premium version of the app. The company is reported to have garnered $100 million in revenue in 2020.

Image Credit: Google

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