While Discord looks to sell its platform, according to Bloomberg, Microsoft is reportedly in front of the discussion with a $10 billion sale.
It is a common business practice to look out for potential buyers to define a company’s value. Although multiple parties are placing Microsoft at the top of the list, nothing is complete yet.
As a matter of fact, some wonder why Discord wants to sell. During the pandemic, Discord became the choice of many communities due mainly to its audio quality and streaming capabilities. This is illustrated by the huge amount of revenue generated by the company in 2020. Discord registered $130 million in sales, with only $45 million in 2019.
The company was already on the verge of being acquired back in 2018 for around $2 billion to $6 billion dollars. At that point, Discord refused because of differences in opinions regarding advertising. For now, there is no way to be sure how serious these negotiations are. The price also skyrocketed after a valuation in late December. Purchasing Discord at that moment would cost Microsoft over $10 billion.
“It’s hard to tell the difference between a serious acquisition attempt and a fishing expedition,” a source told GamesBeat. “It can fall apart at any time. The reality is the company is doing really well. I don’t see a reason they would want to sell. They seem to be completely in control of their destiny right now.”
Microsoft’s Acquisition Interest
Discord also contacted Amazon and Epic Games, but both offered no comments on the situation. The frontrunner of these negotiations seems to be Microsoft, which always looks forward to interesting acquisitions.
In 2011, Microsoft bought Skype for $8.5 billion dollars, solidifying efforts to create the best communication software for Windows. But as of 2020, Discord is the most popular option, with 140 million users around the world compared to Skype’s 40 million users. In addition, the Xbox department of Microsoft already worked with them before to promote Discord Nitro.
Whether or not Discord is really looking for a buyer, users should expect the service to remain active and up to date. Recent fundraising from Clubhouse may push Discord to find someone ready to invest in its projects.
Written by Charles FUSTER
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