Discord, a burgeoning gamer chat platform, is in talks with Microsoft over an acquisition valuing the company at around $ 10 billion, according to multiple reports.
Neither company commented on Venturebeat and Bloomberg’s accounts.
The deal would strengthen Microsoft’s position in the video game industry, which has exploded since the onset of the coronavirus pandemic in early 2020. The tech giant’s Xbox platform is a leading console, and the last year, the company paid $ 7.5 billion for ZeniMax Media and its game publisher, Bethesda Softworks.
Discord has other strategic options besides being bought, Bloomberg pointed out, one of which would be to go public in a market that has been favorable for IPOs in recent times. The company has so far raised nearly $ 500 million in start-up capital, according to Crunchbase. That total includes $ 100 million last year for an estimate of $ 7 billion.
Founded in 2015, Discord now boasts 100 million users. It initially served only gamers, but gained popularity and infamy as a platform used by white supremacists planning a rally in Charlottesville, Va., In 2017. In 2020, after nationwide protests against the Racial injustice sparked by the murder of George Floyd, the start-up has announced a series of initiatives aimed at curbing the use of Discord by hate groups.
In addition to facilitating audio chats between multiple people playing popular games like Call of Duty, Discord facilitates other social chats. He makes money by selling subscriptions and also getting a portion of the sales of games involving his platform.
Investors, who have pushed Microsoft stock to a division-adjusted all-time high of $ 246.13 in recent weeks, did not appear to have an immediate reaction to reports of deal negotiations. Shares of the company closed at $ 237.58, up a fraction.