Microsoft’s reportedly in talks to acquire Discord for more than $10 billion

Microsoft's reportedly in talks to acquire Discord for more than $10 billion

Microsoft’s reportedly in talks to acquire Discord for more than $10 billion

According to Bloomberg, Microsoft is currently in talks with Discord to acquire the communications platform for over $10 billion, but that no deal is imminent. Other companies are also said to be in talks with Discord. If true, a $10 billion deal for Discord would make the gaming-oriented chat platform more valuable than Bethesda, which Microsoft acquired for $7.5 billion. 

Discord is a free service that allows gamers to communicate through video, voice and text. Over time, Discord has seen its userbase expand to cover other users, acting as a platform for study groups, book clubs and other virtual gatherings. While Discord is gamer-focused, it has increasingly become a generic all-purpose chat tool, especially during the COVID-19 pandemic. 

Microsoft sees Discord as a valuable addition to its communications infrastructure, supplementing Teams and Skype to deliver a more accessible and less business-oriented platform. Acquiring Discord would also give Microsoft access to the company’s million’s strong userbase. Discord Nitro (Discord’s premium service) could also be added as one of Microsoft’s Xbox Game Pass perks if acquired. 

Discord currently has 140 million monthly users, and that is valuable. That said, most of these users utilise Discord’s free services. Discord reportedly has fewer than 20 million Discord Nitro subscribers. 

Discord users should not expect an acquisition announcement anytime soon, as other rumours have claimed that Discord plans to become a publically traded company in the future. However, Discord needs to become profitable before becoming a publicly-traded company, as investors won’t want to invest in an unprofitable venture. 
 

Microsoft's reportedly in talks to acquire Discord for more than $10 billion  

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