Microsoft could reportedly acquire Discord next month


Microsoft is reportedly in “exclusive” talks to acquire Discord, and the deal could be completed next month. A Wall Street Journal report citing “people familiar with the matter” has backed a Bloomberg report earlier this week. that said Microsoft was in talks to buy Discord for $ 10 billion or more, and that Xbox boss Phil Spencer was part of the discussions.

“Microsoft and Discord are in exclusive talks and could close a deal next month, assuming the negotiations don’t fail,” the article reads. He also notes that the acquisition appears to be linked to Microsoft hoping to reach more consumers through games and social media. A similar boost saw Microsoft go after an abandoned acquisition of TikTok last year.

If you’re unfamiliar, Discord is a messaging platform used by online communities to meet, chat, and play games together. It has been around since 2015 and its user base has grown considerably in recent years, leading to generating $ 130 million in revenue in 2020 and a valuation of $ 7 billion. The WSJ report notes that Discord recently hired its first CFO and has also been considering an Initial Public Offering.

Discord previously partnered with Xbox Game Pass to give members special perks like access to Discord Nitro, their premium service. If the deal goes through, this would be another high-profile acquisition for Microsoft, who recently acquired ZeniMax Media for $ 7.5 billion, putting development studios like Arkane, Bethesda and id Software under its wing in the process.

Jordan Oloman is a freelance writer for IGN. Follow him on Twitter.



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