MICROSOFT REPORTEDLY IN TALKS TO ACQUIRE DISCORD FOR MORE THAN $10 BILLION

Tue 23 March 2021:

Microsoft Corp. is in discussions to purchase videogame-focused chat platform Discord for more than $10 billion, according to a report by Bloomberg News.

Discord has reached out to potential buyers and Microsoft is one of them, the report said, citing people familiar with the matter. One person said it was more likely to go public than sell itself.

Earlier in the day, VentureBeat reported that Discord was exploring a sale and it was in final talks with a party.

Microsoft declined to comment, while Discord did not immediately respond to Reuters request.

Discord is a free service that lets users communicate through video, voice and text. It also offers a $9.99-a-month subscription service with additional features. According to the Journal report, the company had about 140 million monthly users last year, generating $130 million in annual revenue, about three times what it made the year before.

The Xbox maker has been seeking to strengthen its video game offerings with $7.5 billion acquisition of ZeniMax Media last year, its biggest gaming acquisition ever.

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.

With its strong gaming business, Microsoft has also been looking to own mass social media platforms. Its last big social media deal was the $26.2 billion acquisition of LinkedIn in 2016, while it failed in its bid for short video app TikTok`s US assets in September last year.

Recently, the Financial Times reported about Microsoft`s interest in buying social media platform Pinterest Inc.