A month after reports surfaced that Microsoft wanted to buy the popular voice chat app Discord, those conversations were cut off, a source familiar with the deal confirmed to TechCrunch.
Discord is considering plans to remain independent, possibly charting a path to its own IPO in the not-too-distant future. The Wall Street Journal was the first to report that the deal was canceled.
The two companies were deep in takeover talks that valued Discord at about $ 10 billion before Discord walked out. According to the WSJ, three companies were investigating the possible acquisition, although only Microsoft was mentioned.
Discord’s valuation doubled in less than six months last year and its stock will only look hotter in 2021. A beloved voice chat app originally built for gamers, Discord was in the right place, well ahead of today’s voice chat. trend that Clubhouse sparked. As companies from Facebook to Twitter rush to build speech-based community tools, Discord introduced its own support for curated audio events last month.
Discord’s decision to deviate from a sale makes sense for a company looking to keep its unique DNA rather than get rolled into an existing product from a larger company. The choice could also keep the company away from a protracted antitrust headache, as lawmakers consider legislation that could block major tech deals to prevent further consolidation in the industry.