Microsoft could reportedly get Discord by next month

Microsoft is reportedly in “exclusive” talks to acquire Discord, and the deal could close next month. A report from The Wall Street Journal citing “people familiar with the case” supports a Bloomberg report from earlier this week. stating that Microsoft was in talks to buy Discord for $ 10 billion or more, and that Xbox boss Phil Spencer was part of the discussions.

“Microsoft and Discord are in exclusive talks and could close a deal next month, assuming the negotiations don’t fall apart,” the article said. It also points out that the acquisition is apparently related to Microsoft, hoping to reach more consumers through both gaming and social networks. A similar drive saw Microsaoft pursue an abandoned takeover of TikTok last year.

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If you’re not familiar, Discord is a messaging platform used by online communities to get together, chat, and play games. It’s been around since 2015 and its user base has grown significantly in recent years, leading to revenue of $ 130 million in 2020 and a valuation of $ 7 billion. The WSJ report notes that Discord recently hired its first Chief Financial Officer and is also considering an IPO.

Discord previously partnered with Xbox Game Pass to offer members special benefits such as access to Discord Nitro, the premium service. If the deal goes through, this would be another high-profile acquisition for Microsoft, which recently picked up ZeniMax Media for $ 7.5 billion, taking development studios such as Arkane, Bethesda and id Software under its wing.

Jordan Oloman is a freelance writer for IGN. Follow him on Twitter.