Microsoft reportedly is in talks to acquire Discord for more than $10 billion USD
Microsoft reportedly is in talks to acquire Discord, the popular social platform used by gamers world wide for more than $10 billion USD, as per a Bloomberg report. The discussion reportedly is still in early stages and the company is still negotiating and weighing its options.
Discord was initially built as a messaging app for gamers and gaming centric organizations to connect with their fans. But over the years it has evolved into a multipurpose platform.
The platform has become so popular that your favourite YouTuber or Twitch Streamer probably has created his own server(chat group, not to be confused with an actual networking server) on the platform.
The company raised $100 million at a $7 billion valuation in December last year, according to Pitchbook.
According to a Wall Street Journal report, Tomasz Marcinkowski, (former head of finance at Pinterest Inc.) took over as chief financial officer at Discord on March 9. It is an initial step in the company’s plan to go public, says a “source familiar with the company’s plans”. The report also says that Jason Citron, Founder & CEO of Discord doesn’t have plans to take the company public right now.
Discord is a game changer in the gaming community as the platform is one of the major ways gaming organizations and communities connect with their core audience.
The platform might not be profitable yet, and it might be a long way before it’s profitable, but it still is a huge asset.
Acquiring a platform such as Discord will benefit Xbox a lot as it will then be able to reach a wider audience let it be gamers or non-gamers. We have seen Xbox offer 3 months of Discord Nitro to Xbox Game Pass Ultimate users. If the acquisition does happen, you will probably see Xbox market similar deals to bring more subscribers to the Xbox Game Pass subscription service.
One thing Discord users are already worried about is that if the acquisition does take place it could affect their user experience. While the acquisition will benefit Xbox Game Pass service, the same won’t necessarily be the case for Discord. No one wants to see Microsoft push awful updates like they do with Windows 10. Also, no one wants to see Microsoft integrate Xbox Game Pass ads into Discord.
As per a report by VentureBeat, Microsoft isn’t the only company interested in acquiring Discord, there are other potential buyers in talks with Discord as well.
Microsoft recently also acquired ZeniMax Media, the parent company of Bethesda Softworks and id Software. With the company now also in talks with Discord, it goes to show how much they value their gaming brand Xbox. It seems like Microsoft wants to unlock the full potential of Xbox Game Pass service while also strengthening its base in the gaming industry.
With the way Microsoft is acquiring gaming centric companies it could be only a matter of time before Microsoft’s Xbox surpasses Sony’s PlayStation and other competitors and becomes the leading gaming brand.
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