- The reported deal talks between Discord and Microsoft have supposedly ended
- According to specialists Discord was selling itself for $10 billion or more
- Negotiations may be resumed in the future
According to people familiar with the matter, Discord has ended deal talks of acquisition with Microsoft for now.
Discord Ceases the Negotiations
VoIP, instant messaging and digital distribution platform Discord has reportedly ceased the deal talks with tech company Microsoft. However the reports don’t exclude the possibility of the deal resuming in the future.
According to the specialists’ report, Discord had put itself on the market for the price of $10 billion or even more. Several influential buyers had shown interest, including Epic Games, Amazon and Microsoft. Microsoft supposedly pushed the deal talks farthest of the three. However the messaging platform has preferred remaining independent for the time being and look instead into the prospects of initial public offerings, Wall Street Journal reported.
Discord’s value was estimated at 7 billion by the end of 2020. During that time the platform counted 140 million monthly users. Wall Street Journal estimates Discord’s revenue to have tripled, sitting at $130 million for 2020. This is thanks to the platform’s subscription system that unlocks new functions for $9.99 per month or $99.99 per year. According to an article by Reuters, Discord also raised $100 million in a private funding round (which also helped to determine the company’s current value).
If the reports are exact, this would make it the second time in recent months that Microsoft has failed to negotiate a major prospective acquisition after failing to acquire TikTok in summer 2020. Microsoft however continues seeking to strengthen its positions. This year it bought Zenimax, Bethesda’s parent company, for $7.5 billion and Nuance Communications Inc for $16 billion.
Discord has grown to be a beloved platform for all kinds of people, primarily video game enthusiasts, to hang at. It has been designed with gamers’ comfort in mind and offers some unique features. Whether it chooses to continue its independence or be acquired by a larger company, it is sure to have an impact on the gaming community as a whole.
