Microsoft may acquire Discord, a popular gaming-chat platform for about $10 billion, and if it couldn’t, Discord may become a public company. The company is said to be in talks with other prospective buyers such as Amazon and Epic Games.
Apart from that, another media report said Discord is in talks with a buyer regarding the sale of its chat software. But there appears to be nothing concrete over that, and the source claims that the deal could fall apart at any time.
In the past year, the pandemic has boosted the prospects of gaming firms, and that’s one reason that encourages the acquisition talks between Microsoft and Discord. Many people are staying home, and turning to video games for entertainment.
Discord is a gaming-focused company based in San Francisco. It provides the platform for people to chat through voice, text, or video in real-time. The app, popularly regarded as a video game platform has about 130 million monthly users.
Recently, Discord has been expanding its presence to reflect more of a chat than a gaming-chat app. But it is not profitable yet, because of its offering its free software to most users. However, revenue is generated through subscriptions that users can acquire in order to get more advanced features like extra sticker packs, higher resolution screen sharing, and larger upload limits.
Last year, Discord’s valuation was $7 billion but a funding round generated $100 million. Back in 2020, it generated $130 million in revenue. As such it is believed that if Microsoft buys Discord that would boost its gaming business.
According to Matthew Kanterman, Bloomberg’s intelligent analyst, if Microsoft buys Discord, it makes a lot of sense as it continues to reshape its gaming business more toward software and services.