Discord ends $ 10 billion plus sales calls with Microsoft

This story was originally published 2021-03-23
3:59 p.m. PDTon March 23, 2021 and last updated 2021-04-21
2:19 p.m. PDTon April 21, 2021.

When the news broke that Discord was talking to Microsoft about a $ 10 billion plus sale, people quickly worried it could turn out like the 2011 acquisition of Redmond Skype. The communications platform gradually turned into a bloated, buggy piece of software that almost impossible. to shut down on Windows. It seems like Discord might not have to face that fate after all. The gaming-focused chat startup halted talks with Microsoft and other interested parties.

The Wall Street Journal writes that “according to people familiar with the case,” Discord has stopped talking to Microsoft, but at one point it is still interested in a possible IPO. However, a sale is not completely off the table. The WSJ reports that the parties can get back together and enter into a deal later.

Bloomberg initially reported that Discord spoke to multiple potential buyers, including Amazon and Epic Games, but no sale was imminent. People thought it was more likely that Discord would go public rather than sell, so the talks were as preliminary as they could get. Nevertheless, Bloomberg’s sources claimed that Discord initially contacted Microsoft and not the other way around.

Should a deal ever come, Discord could likely keep its gaming-centric focus and become part of Xbox’s social features – unlike Skype, which Microsoft now bundles as a business tool for businesses. That’s probably why Discord spoke to Xbox chief Phil Spencer and not the company’s business division.