Microsoft Corporation is in talks to acquire Discord for more than $10 Billion as per 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 to Bloomberg, who asked not to be identified because the discussions are private.
Representatives for Microsoft and Discord declined to comment on this report.
Discord was started to solve a big problem: how to communicate with friends around the world while playing games online. But founders Jason Citron and Stan Vishnevskiy soon realized it could be enjoyed for more purposes. The growth of other uses on the platform began to skyrocket. Today, Discord is used by everyone from local hiking clubs, to art communities, to study groups. Discord has garnered 100 million monthly active users with people talking for upwards of 4 hours per day on the platform.
Microsoft previously tried to buy TikTok and Pinterest
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 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.”
“We expect Xbox to remain acquisitive to keep bolstering the value proposition of Game Pass and drive subscriptions higher,” Kanterman said.
The Bloomberg report said the head of Xbox, Phil Spencer, has been talking to the Discord team. Two sources also told Bloomberg that Discord has also held discussions with Epic Games and Amazon, but representatives from both companies declined to comment.
Microsoft has previously partnered with Discord to offer perks as part of the Xbox Game Pass subscription service, including three months of Discord Nitro to its subscribers.