Discord has been talking to potential buyers and software giant Microsoft is in the running, but no deal is imminent, said the people, who asked not to be identified because the discussions are private. Discord is more likely to go public than sell itself, one person said. Representatives for Microsoft and Discord declined to comment. VentureBeat earlier on Monday that Discord was engaged in sales talks.
San Francisco-based Discord is best known for its free service that lets gamers communicate by video, voice and text, and people stuck at home during the pandemic have increasingly used its technology for study groups, dance classes, book clubs and other virtual gatherings. It has more than 100 million monthly active users and has been elaborating its communication tools to turn it into a “” rather than merely a gamer-centric chat platform.
Microsoft, which last year sought to
buy social-media app and
held talks to acquire ,
has been shopping for assets that would provide access to thriving communities
of users, according to people familiar with the company’s thinking. Microsoft’s
Xbox business has also been expanding the suite of subscription perks it
provides as part of its Game Pass offering. Microsoft shares were up about 1.2%
in the first minutes of trading Tuesday.
After Microsoft’s recent $7.5 billion purchase of , owner of The Elder Scrolls and Doom publisher Bethesda Softworks, an acquisition of Discord would signal the Redmond, Washington-based software giant’s willingness to keep investing in its video-game unit.
Discord reached out to Microsoft to gauge interest, and Xbox chief Phil Spencer has been talking to the company, according to one person. The company raised $100 million at a $7 billion valuation last year, according to Pitchbook.