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Microsoft reportedly in talks to acquire Discord for over $10 billion

Bottom line: Discord, a staple app on most gaming PCs that also happens to be a robust chat client for productivity, is reportedly being considered for acquisition by Microsoft in a deal worth over $10 billion. The platform was recently valued at $7 billion, but considering that Slack, a rival of sorts, and with overall fewer monthly users, went to Salesforce for nearly four times that figure ($27.7 billion), Microsoft could end up with a killer deal as long as it’s able to sustain the 100 million+ monthly userbase and manage its relationship with the company’s own Teams and Xbox platforms.

Microsoft and Discord are said to be discussing an acquisition deal worth over $10 billion, according to Bloomberg, which notes that the video-chat platform has been recently reaching out to potential buyers and software giants, with Microsoft Xbox chief Phil Spencer now engaged in talks for a potential buyout.

Another source talking to Bloomberg claims that Discord might go public, considering that IPOs of gaming properties have been going higher than ever with Roblox’s recent $38 billion valuation. While Discord continues to serve the gaming community, often putting players directly in touch with game developers through official channels, the platform beefed up its infrastructure last year amidst the increasing work from home culture induced by the pandemic and rebranded itself as a place for everyone to talk, not just gamers.

If Microsoft’s deal goes through, it’ll be interesting to see how it would leverage Discord’s massive userbase that had an impressive 300 million registered users as of last year and is said to be well in control of its fate at the moment.

Moreover, Microsoft could bundle Discord’s Nitro subscription with Xbox Game Pass as yet another feather in its cap following its recent ZeniMax acquisition, and/or boost its workplace offerings by merging Discord’s useful/relevant features with Microsoft Teams. It might also do well by just leaving Discord as is.

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