Microsoft is shopping again and this time it wants to buy Discord, the communication platform for gamers.
This morning, Bloomberg reported that the tech giant is keen to acquire the app for more than $ 10 billion – a hefty sum. In December, Discord raised $ 100 million for a valuation of $ 7 billion, so it wouldn’t be surprising if the sale price was over $ 10 billion.
On Monday, VentureBeat reported that Discord is exploring several options, including a sell.
But a Microsoft acquisition isn’t the only possibility on the horizon for Discord. Bloomberg’s report also noted that it may even go public. Gaming-related stocks are all the rage right now, and the communications platform could be inspired by the stellar IPO of the Roblox gaming platform.
Microsoft’s efforts to attract more gamers are no secret. The company launched next-gen consoles last year and acquired popular game studios ZeniMax and Bethesda for $ 7.5 billion. If the company ends up buying Discord, it might want to incorporate some of its premium features, such as HD video and screen sharing, into the Xbox Game Pass offering.
As this news fell some on Twitter were rightly concerned that Microsoft would abandon Discord, just as it did for Skype and its Mixer game streaming platform. While Skype is still around, its basic features like video calling have been swallowed up by Teams. It would be a foolish decision for the company to take some functionality from the app and integrate it into Teams.
While Teams is similar to Discord in terms of functionality, the two serve a different audience who are used to different workflows. Teams are more suited to communication in the workplace, and stuffing unrelated features into the app would just confuse everyone.
Microsoft teams are nothing but contention for baby boomers
– TTTUUUJJJ // caprice (@ TTTUUUJJJ911117) June 17, 2020
The coronavirus pandemic helped Discord grow rapidly as people spent more time sitting at home. Last December, the company said it has more than 100 million monthly active users who spend 4 billion minutes chatting every day. During this time, people started to use the app for study groups, art communities, and even to watch movies together. Microsoft could therefore potentially take advantage of this to target people who are not gamers and expand Discord’s user base.
It is possible that these discussions between these two companies will end in failure. Last year, Microsft was in talks to acquire the short video platform TikTok, and this year it tried to gobble up the amateur social network Pinterest. None of this happened, of course.
Published March 23, 2021 – 05:51 UTC