Gaming chat platform, Discord is in talks with Xbox head, Phil Spencer to be acquired by Microsoft in a potential deal valued at over $10 billion dollars, Bloomberg reports. The news is off the heels of Microsoft recently finalizing its $7.5 billion Bethesda acquisition from September.
The deal was earlier reported by VentureBeat, at the time it was only known Discord was expressing interest to sell to interested potential buyers at the previously mentioned value. The chat platform has apparently signed an exclusive acquisition discussion with one party which might hint that the deal is closing. Bloomberg sources say that Discord might not go down the acquisition path and could opt-out to take the company public instead.
Some killer scoops from my talented colleagues:@6d6f636869 and @ianmking on the Switch Pro using Nvidia's DLSS (!!): https://t.co/zvUORbpAyb@dinabass and @Katie_Roof on Microsoft potentially buying Discord: https://t.co/xBGDYlXimS
— Jason Schreier (@jasonschreier) March 23, 2021
That is a choice but I’d argue it might not be the right choice as Discord is not a profitable company, The Wall Street Journal reported, and going public is a huge gamble, especially in a pandemic. Discord brings in about 140 million users every month and generated $130 million in revenue last year, the company was last valued at $7 billion.
In the past, video call software has had acquisition discussions with companies like Amazon and Epic Games according to Bloomberg. To be honest, a potential acquisition from Microsoft is the best possible move and maybe it will lead to better stability with the platform as the tech the chat platform could definitely be improved upon if Discord could apply Microsoft technology to the platform.
My one hope is that Microsoft leaves Discord alone and tries not to incorporate it into other video call services like Microsoft Team or even Skype, my least favorite video chat software. There’s also the chance Microsoft adds Discord as a perk for Game Pass Ultimate subscribers and paywalls the ecosystem on other platforms. At this point, this is pure speculation and we’ll likely learn more if/when things are revealed by official sources.