Microsoft reportedly in talks to acquire Discord for over $10 billion
Microsoft Corp is apparently in talks to buy Discord, the popular VoIP and messaging platform, for a deal worth more than 10 billion US Dollars, as per sources close to the matter.
According to a Reuters report, Discord has reached out to potential buyers, with Microsoft being one of the companies that might acquire it, as per the sources. Although, one persons believes that the VoIP and messaging platform would more likely to go public rather than just selling. Recently, it was also reported that the company is exploring a sale and that it was already in final talks with a company.
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.
Unfortunately, Microsoft has declined to comment on the matter, while Discord has yet to respond to any queries either. At the moment, Discord is valued at around 7 billion US Dollars as of December last year. For those unaware, Discord is a platform that serves various purposes, like gaming and its related activities, meanwhile, it can also be used to create virtual parties and meetings as well. Thus, the move from Microsoft is likely a part of its attempt to strengthen its standing in the video game industry.
Discord, which was valued at around $7 billion as of December, is a platform on which users coordinate group activities such as games, discussions and even virtual parties. Microsoft has been looking to own mass social media platforms, although its last big deal was the $26.2 billion acquisition of LinkedIn in 2016 as it failed in its bid for short video app TikTok’s US assets in September last year.
Xbox maker Microsoft has also been trying to strengthen its video game offerings, with its $7.5 billion purchase of ZeniMax Media last year its biggest ever in the field. Discord has reached out to potential buyers and Microsoft is one of them, Bloomberg News reported earlier, citing people familiar with the matter. One person said it was more likely to go public than sell itself.
Furthermore, if the deal goes through, it would be the biggest acquisition of the Xbox maker since its acquisition of ZeniMax Media last year. This also arrives amid the boost in the gaming industry caused by the coronavirus pandemic, which led to the growth of the industry thanks to people staying at home and turning to games for entertainment during the lockdown.
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