Microsoft in talks to buy Discord for more than €10bn

The messaging platform for gamers is reportedly weighing up its options for a sale, with multiple interested parties.

Discord, a social media company popular with gamers, has reportedly held talks with Microsoft about selling with an offer of more than $10bn said to be on the table, according to Bloomberg News.

VentureBeat also reported that the gamer messaging company was “exploring its options for a sale” with interest from multiple parties.

Discord was founded in 2015 by CEO Jason Citron and CTO Stan Vishnevskiy as a platform that provides voice, video and text chat to gamers.

Since then, the company has gradually broadened its sights beyond the gaming community, enabling users to chat about big passions from sports and tabletop games to music and pets.

While the platform is free for most users, Discord makes money through monthly subscriptions, which offer more advanced features such as higher resolution screensharing, extra sticker packs and larger upload limits.

Last summer, Discord announced that it raised $100m in venture funding, bringing its valuation to a reported $3.5bn. Six months later, it raised another $100m, reportedly doubling the company’s value to around $7bn.

If Microsoft were to Discord, it would follow the Xbox maker’s largest gaming acquisition to date with the $7.5bn purchase of Bethesda’s parent company, ZeniMax Media. The deal received the green light from the EU’s competition authority earlier this year.

This comes at a time when the game industry is reaping the benefits of Covid-19 restrictions, as  people seek new forms of entertainment.

Outside of gaming, Microsoft has also been looking into social media platforms over the years, having acquired LinkedIn in 2016 for more than $26bn.

According to the Financial Times, the tech giant also approached Pinterest about a takeover earlier this year.

Discord’s messaging platform, which has around 140m monthly active users, could prove very appealing to potential buyers, including Microsoft.

However, according to Bloomberg’s sources, the deal isn’t a sure bet, with one person saying Discord would be more likely to go public than seek an acquisition.

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