“Microsoft and Discord are in exclusive talks and can complete an agreement next month, provided the negotiations do not fall apart,” the article said. It also points out that the acquisition is apparently linked to Microsoft in the hope of reaching more consumers across both games and social networks. A similar drivetrain saw Microsoft pursue an abandoned acquisition of TikTok last year.
If you are not familiar, Discord is a messaging platform used by online communities to gather, chat and play games together. It has been around since 2015 and has significantly increased its user base in recent years, leading to $ 130 million in revenue in 2020, and a valuation of $ 7 billion. The WSJ’s report indicates that Discord recently hired its first CFO and has also considered a first IPO.
Discord previously partnered with Xbox Game Pass to provide members with special benefits, such as access to Discord Nitro, the premium service. If the deal goes through, this will be another high-profile acquisition for Microsoft, which recently acquired ZeniMax Media for $ 7.5 billion and pulled development studios such as Arkane, Bethesda and id Software under its wing in the process.
Jordan Oloman is a freelance writer for IGN. Follow him on Twitter.