Microsoft Corp. is in talks to acquire Discord Inc., a video game community for more than $ 10 billion, according to people familiar with the matter.
Discord has talked to potential buyers, and the software giant Microsoft is underway, but no agreement is imminent, said the people, who asked not to be identified because the discussions are private. Discord is more likely to go public than sell itself, one person said. Representatives of Microsoft and Discord declined to comment.
San Francisco-based Discord is best known for its free service that allows players to communicate via video, voice and text, and people stuck at home during the pandemic have increasingly used the technology for study groups, dance classes, book clubs and other virtual gatherings. Microsoft, which last year sought to buy social media apps TikTok and held calls to get Pinterest Inc., has traded for assets that will provide access to thriving users of users, according to people familiar with the company’s thinking.
Disagreement reached out to Microsoft to measure interest, and Microsoft Xbox CEO Phil Spencer has, according to one person, spoken to the company. VentureBeat reported earlier on Monday that Discord was in talks to sell itself. The company raised $ 100 million for a valuation of $ 7 billion last year, according to Pitchbook.
Discord has also previously held discussions with Epic Games Inc. and Amazon.com Inc., according to two people familiar with the matter. Epic and Amazon did not immediately respond to requests for comment.
(Updates with details about the company’s plans starting in the third paragraph)