Communication and chat platform Discord is reportedly considering selling its service for more than $ 10 billion, according to VentureBeat. It took everyone by surprise due to the expected impending IPO. There are several potential buyers and, of course, Microsoft is one of them.
UPDATE: According to Bloomberg, Microsoft would be the preferred company to learn about this acquisition. Talks are still at an early stage and everything could go wrong, but Redmond is leading the bid for Discord.
Discord sales talks are advanced
The news came to the fore thanks to VentureBeat, who claimed that two sources familiar with the matter in question reported that Discord would explore its options given the growing interest from different companies to buy the business. One of these sources claimed that the company has already signed an exclusive acquisition agreement.
That would mean Discord, which managed to raise $ 140 million in fundraising rounds in December, would have a valuation of over $ 10 billion. A purchase within the reach of very few companies.
Discord is seen as a strategic asset when connecting video game companies with their fans in audio and chat communities. The eventual sale is in the hands of its CEO Jason Citron, who will have to decide whether his company can carry out its mission with another company.
“I know they are in negotiations with several companies,” said one of the sources. “The market is in a state where you could do double-digit deals in the billion.”
Of course, since Discord they haven’t made any statements, but the following reasonable doubt arises: Roblox has managed to stand out on the stock market and its market cap is over $ 40 billion. Now the company must decide whether to venture into the stock market, even if it is too early for them to accept one of the offers or if it stays.
This is not the first time that Discord is investigating a possible acquisition, already in 2018 they studied the offers in 2018 through Quatalyst and rejected them all. Now people are starting to wonder if Amazon, Microsoft, Google or Tencent could attempt such an acquisition. We’ll see if the situation arises or if this is a new Discord flirtation.
Discord: the rebirth of clubs on Xbox
Microsoft seems to be the big favorite to finalize the purchase. They recently came very close to buying TikTok and had discussions to acquire Pinterest. The people of Redmond have a lot of money in the box and are eager to make a big investment.
The acquisition for Microsoft could be very attractive. It would boost your gaming experience on Xbox, which has already made deals with Discord, while it would also do on PC and even go hand in hand with Game Pass. Bloomberg analyst Matthew Kanterman said “Microsoft would have a great opportunity to bring Discord Nitro (Discord’s premium service) into Game Pass.”
In this way, the value of Game Pass would increase even more and be an offer difficult to reject, especially after the recent acquisition of Bethesda and the integration of EA Play. Microsoft has decided to dominate the game this decade and they seem to be serious about it.
As if that weren’t enough, Discord uses Google Cloud, so moving everything to Azure would be a blow to Google and bolster Microsoft’s cloud storage service, one of its gems.
What do you think? Do you think Microsoft should undertake this operation? Would Discord Nitro be an important addition to Game Pass membership?