Earlier this week, reports emerged that Discord is exploring a sale that could be worth more than $10 billion. Microsoft was said to be in the running, with reports claiming that the two parties are already in talks. A couple of days later, the Wall Street Journal claims that the Windows giant is now in advanced and exclusive talks to acquire the messaging platform. The companies may reach a deal as early as next month. That’s assuming the ongoing talks don’t fall apart, though.
According to the report, which cites people familiar with the matter, Microsoft is seeking to deepen its consumer offerings. The company tried to buy the popular short-form video-sharing app TikTok (owned by China’s ByteDance) last summer, amid the Trump Administration’s crackdown on Chinese companies operating in the US. However, nothing came off that effort.
Reports suggest that Microsoft also tried to buy the old-school image-sharing social network Pinterest last year. But those talks fell through as well. The company is now seemingly running behind Discord.
Microsoft is in advanced and exclusive talks with Discord for a potential acquisition
Discord initially arrived as a chat platform for gamers. However, the San Francisco-based company has now evolved into a full-fledged messaging platform offering voice and video calling features as well. It is now a place for everyone to communicate.
Much like several other social media apps such as Clubhouse, Discord also grew in popularity during the peak of the COVID-19 pandemic, when people were forced to stay home, thus craving for social interactions. Reports suggested that the company has been considering an IPO (initial public offering), like Facebook’s WhatsApp and Signal Messenger.
However, the company seemingly hasn’t entirely ruled out an outright sale. And if it gets the desired valuation, we might soon see Discord move into the hands of Microsoft. Or perhaps some other tech giant who may also be interested in a potential acquisition of the popular messaging platform.
Microsoft, with a market value of more than $1.7 trillion, certainly has the fund as well as the desire to acquire Discord though. The platform would be a highly valuable asset for the company’s Xbox division. It would fit right in as well, given the service is still very much favored by gamers.
Microsoft has acquired several big game companies in the last couple of years. Discord would now complement those purchases with a consumer-focused service. It will now be interesting to see whether the company manages to strike a deal with Discord.