Microsoft might be on the verge of another huge deal. According to the latest report, the company plans to acquire Discord for more than $10 billion.
Bloomberg shared the news on March 23, citing sources familiar with the situation. Despite Discord having been in talks with potential buyers for a while, no deal is imminent yet.
Last year, the platform for chats and communities discussed the possible deal with Amazon and Epic Games. However, the company may not want to sell its business, as it’s still in a growth phase, according to VentureBeat. Instead, Discord may go public via IPO.
Microsoft, on the other hand, might be really interested in acquiring a platform like this. The company has been looking towards services that would provide access to big and close-knit communities. For example, Microsoft had plans to buy TikTok and Pinterest in 2020.
Discord is a service with MAU of over 140 million. Its revenue reached $130 million last year (compared to $45 million in 2019). According to Bloomberg, Microsoft might be interested in including Discord’s premium subscription Nitro into Xbox Game Pass to attract more people to its platform. It also correlates with the company’s strategy to move its gaming business towards services and software.
Microsoft closed a $7.5 billion acquisition of ZeniMax in March, saying that the whole deal is “about delivering great exclusive games for you that ship on platforms where Game Pass exists.”