Microsoft in Talks to Buy Discord for More Than $10 Billion


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Microsoft in Talks to Buy Discord for More Than $10 Billion

Microsoft Corp. is in talks to acquire Discord Inc., a video-game chat community, for more than $10 billion, according to people familiar with the matter.

Discord has been talking to potential buyers and software giant Microsoft is in the running, but no deal is imminent, said the people, who asked not to be identified because the discussions are private. Discord is more likely to go public than sell itself, one person said. Representatives for Microsoft and Discord declined to comment. VentureBeat reported earlier on Monday that Discord was engaged in sales talks.

San Francisco-based Discord is best known for its free service that lets gamers communicate by video, voice and text, and people stuck at home during the pandemic have increasingly used its technology for study groups, dance classes, book clubs and other virtual gatherings. It has more than 100 million monthly active users and has been elaborating its communication tools to turn it into a “place to talk” rather than merely a gamer-centric chat platform.

Microsoft, which last year sought to buy social-media app TikTok and held talks to acquire Pinterest Inc., has been shopping for assets that would provide access to thriving communities of users, according to people familiar with the company’s thinking. Microsoft’s Xbox business has also been expanding the suite of subscription perks it provides as part of its Game Pass offering.

“Microsoft possibly acquiring Discord makes a lot of sense as it continues to reshape its gaming business more toward software and services,” said Bloomberg Intelligence Analyst Matthew Kanterman. “There’s a big opportunity to bundle Discord’s premium offering, Nitro, into the Game Pass service to drive more subscriptions from the last reported 18 million.”

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Can't say I'm surprised, it was bound to happen sooner or later. Discord is a far way from being profitable, some people use Discord as their cloud backup even. Think of the amount of media being uploaded in millions of Discord servers at the same time... Seems like this is the business model for a lot of tech companies these days: accumulate a shitton of customers, don't be profitable, sell for value (your amount of users * $x) and watch the buyer become the "evil company". Exactly how Instagram sold to Facebook for $2 billion with an enormous amount of debt.
Honestly I'm happy it's Microsoft and not Tencent or Facebook.
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