Microsoft observes the boom in the gaming industry during the pandemic. And that led the company to acquire other gaming companies. For instance, its recent acquisition of ZeniMax Media, which’s behind the titles like The Elder Scrolls and Fallout, is one of the most popular video game companies. Now, Microsoft is allegedly in talks to acquire Discord, the gaming-focused chat software, for more than $10 billion USD.
Discord mainly focuses on the gaming industry, and it’s a vast community for gamers to interact with. It has a lot of nifty features and is most relevant to gaming.
According to a Bloomberg report, Discord has been talking to potential buyers, and software giant Microsoft is in the running, but no deal is imminent as it’s too early to discuss. Discord is more likely to go public than sell itself, one source said despite the discussion. However, representatives for Microsoft and Discord declined to comment further.
While Microsoft is one of the potential suitors, Discord has also been in discussions with Epic Games and Amazon. VentureBeat was the first to report that Discord engaged in a sales talk.
Discord Inc., the company with roughly 140 million monthly users. It recently raised $100 million at a $7 billion valuation. It was exploring a sale worth more than $10 billion. But whether it sells or not will depend on Discord CEO Jason Citron, who will have to decide if the company can better fulfill its mission as part of another company.
Image Credit: Dean Takahashi
What will Microsoft gain by acquiring Discord?
Regardless of speculations, the acquisition would really help Microsoft for the future of communication on the Xbox platform. Microsoft’s strategy focuses on offering its games, especially via Xbox Game Pass, on consoles, PC, and mobile. Discord integration could make communicating across all these platforms a much smoother process.
In conclusion, owning Discord would only strengthen the value of the Xbox brand.
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