Microsoft Corp. is in advanced discussions to bring messaging platform Discord Inc. to acquire for $ 10 billion or more, according to people familiar with the case, as the software giant looks to deepen its consumer offering.
Microsoft and Discord are in exclusive talks and could close a deal next month, assuming the negotiations don’t fall apart, the people said.
Originally a gamer favorite, San Francisco-based Discord offers voice, text, and video chat. The platform’s popularity has skyrocketed since the pandemic started, as people stay at home and connect online – just like that of other chat services, such as Facebook Inc.’s WhatsApp and Signal Messenger LLC. Discord is considering an IPO.
Microsoft, which has a market value of more than $ 1.7 trillion, has been looking for an acquisition that would allow it to reach more consumers. Last summer, it held talks to buy the popular video-sharing app TikTok amid a high-profile geopolitical deadlock prompted by the Trump administration, before halting the effort.
VentureBeat reported this week that Discord was investigating a sale and entered into exclusive discussions with an unnamed suitor.