Microsoft reportedly in talks to buy Discord for more than $10 billion

Microsoft Corp. is currently discussing the purchase of the video game-focused chat platform Discord for more than $ 10 billion a report from Bloomberg News.

Citing sources familiar with the matter, Bloomberg reported Monday that a deal was not imminent and that Discord had also spoken to others about a sale. Discord previously spoke to Inc., according to Bloomberg.
AMZN, + 1.17%
and “Fortnite” maker Epic Games Inc.

However, a source told Bloomberg that Discord would go public rather than sell.

Discord recently hired a new chief financial officer as a first step towards a potential IPO. The Wall Street Journal reported last week.

San Francisco-based Discord has raised approximately $ 480 million in funding. according to CrunchbaseMost recently, a $ 100 million financing round was closed in December, valued at around $ 7 billion.

Discord is a free service that allows users to communicate using video, voice, and text. It also offers a subscription service for $ 9.99 per month with additional features. According to the Journal report, the company had about 140 million monthly users last year and had annual revenue of $ 130 million, roughly three times the previous year’s figure.

The company also made headlines in January after The WallStreetBets server was temporarily removed Amid the meme stick frenzy, although Discord said the move was to counter hateful and discriminatory behavior. Discord then reversed course and started helping WallStreetBets moderators.

MSFT, + 2.45%
has reportedly targeted active online communities that can be coupled with its cloud platform, and The Financial Times reported last month it tried to buy Pinterest Inc.
PINS, -0.90%
in the last few months. Microsoft failed last September his offer to buy TikTok.

Later in September Microsoft has acquired ZeniMax Media, the parent company of video game maker Bethesda Softworks, for $ 7.5 billion in cash.

Microsoft stocks are up 6% year-to-date, compared with a 7% gain in the Dow Jones Industrial Average
DJIA, + 0.32%,
of which it is a component.

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