Microsoft wants to acquire Discord for more than $10bnEuropost
Messaging platform Discord is said to be courting potential buyers, Microsoft among them, at a price that could exceed $10bn, Bloomberg News reported, citing people familiar with the matter. Otherwise, it would go public than sell itself.
Earlier in the day, in a separate report, VentureBeat also said that Discord was exploring a sale, adding that the chat platform was in final talks with one party, which could once again mean Microsoft. If this turns out to be true, it would mean another huge acquisition by Microsoft following its recently completed $7.5bn buyout of ZeniMax Media.
Both Microsoft and Discord did not immediately respond to Reuters requests for comments.
Meanwhile, Bloomberg named Epic Games and Amazon as companies that have also held discussions with Discord in the past.
The Covid-19 pandemic has boosted the prospects of gaming companies as people stayed at home and turned to video games for entertainment during lockdowns. Earlier this month, US gaming company Roblox made a strong market debut after going public through a direct listing rather than a traditional initial public offering.
Discord last raised funding in December 2020, a $140m round that valued the games-focused chat platform at $7bn. An interview with The Wall Street Journal this month put Discord's 2020 revenue at $130m, up from $45m the year before. However, the company's CEO, Jason Citron, said that it had yet to turn an annual profit.
Discord’s software is free for most users, but the company makes money through $9.99 monthly Nitro subscriptions that offer more advanced features like higher resolution screensharing, extra sticker packs, and larger upload limits.