Popular gaming chat platform Discord Inc. is rumored to be up for sale and is looking at several potential buyers. Some sources speculate that Microsoft is one of the frontrunners, aiming to bag the deal worth more than $10 billion.
Microsoft is in talks to acquire Discord for over $10 billion, Bloomberg reportedOpens a new window . Gaming is enjoying a pandemic boost, and DiscordOpens a new window , a gaming communication platform that allows users to chat via video, voice and text for free, has gained considerable momentum.
The startup founded in 2015 reported blockbuster revenue, generating $130 million in 2020, a massive increase from $45 million in 2019. The San Francisco-based gaming chat platform recently raised $140 million in fresh funding, upping its valuation to $7 billion. Despite the pandemic boost, profitability, and a swelling 150 million user base, it’s trying to attract investors. Well, it also has aspirations to go public. Â
Meanwhile, for Microsoft, the takeover will enable the Redmond tech giant to bolster the Xbox ecosystem. It will allow Microsoft to unite its PC and console under the Xbox brand. The tech giant might also integrate Discord’s premium upgrade plan Nitro with Game Pass to boost its subscription. The Game Pass currently has around 18 million subscribers.
To turn the tables on its well-heeled rivals like Playstation-maker Sony and Nintendo, the tech giant recently bought Bethesda for a $7.5 billion price tag. With this deal, Microsoft gains some of the most well-known games like Fallout and Doom, which will be made available exclusively on Xbox and PC. Discord connects game studios and publishers with their communities, something Microsoft wants to leverage ahead of its integration of Bethesda games to its Xbox and PC.
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Gaming Communities Matter
With Discord, Microsoft also plans to bring gaming communities into the fold. Given the company’s recent acquisition track record with LinkedIn, GitHub and Minecraft, Microsoft aims to make gaming more accessible. Console manufacturers like Sony and Nintendo experimented with creating their own social media chat platforms for gamers from scratch but couldn’t match Discord’s features or popularity. In fact, PlayStation’s in-built chat app and Nintendo’s NoonLink failed to gain any traction as social media chat platforms. Â
Fortnite Maker Also Makes a Bid for Discord
Another top contender in the race to buy Discord is Fortnite creator Epic Games. The company, valued at $28 billion, acquired the maker of Fall Guys video game Tonic Games Group. In 2021, the Fortnite publisher made several smaller acquisitions like RAD Game Tools in Kirkland and Manchester’s Cubic Motion, specializing in facial animation technology.
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