Tech giant Microsoft is reportedly in talks to buy gaming-focused chat platform Discord for over $10 billion. According to a Bloomberg report, the talks are in early stages right now and there’s a chance that Discord may decide to go public instead.
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. 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.
The chat platform is also in talks with Epic Games and Amazon for a similar deal, and Microsoft is in the running, but no deal is imminent, the report said. Discord’s sale plans were first reported by Venturebeat on 22 March, which said “multiple parties” were interested in buying the company. Discord had reached a valuation of $7 billion in December after it raised $140 million in a funding round led by Greenoaks Capital. The company had also raised $100 million in June last year. Venturebeat’s source said the company could be looking at a double-digit acquisition soon.
Discord is more likely to go public than sell itself, one person said. Representatives for Microsoft and Discord declined to comment.
