Microsoft is reportedly in talks to acquire gaming-focused chat software and platform Discord.
Per a Bloomberg report, the potential acquisition could cost more than US$10billion, if a deal is struck between Microsoft and Discord. Bloomberg’s anonymous sources say Discord has been talking to a number of potential buyers, and reached out to Microsoft to “gauge interest”. Xbox chief Phil Spencer is reportedly in talks with Discord, but no deal has been confirmed at this time.
The sources have also claimed that other companies in discussions with Epic Games and Amazon. One source has also suggested that Discord will likely go public than sell itself.
In December, Discord was valued at US$7billion, according to a Tech Crunch report.
Discord offers both free and paid services. Both services allow users to communicate via video, voice and text chats. Apart from gaming, the platform has been used to conduct online dance classes, book clubs and other forms of virtual gatherings during the ongoing coronavirus pandemic.
The paid Discord service differs from its free counterpart by offering advanced features like higher resolution screensharing, extra sticker packs, and larger upload limits.
Should a deal be struck between Microsoft and Discord, it would be Microsoft’s second big deal within the past year. Its US$7.5billion acquisition of ZeniMax Media – which includes studios like Bethesda Softworks, id Software and Arkane Studios – was approved earlier this month.