Microsoft to acquire Discord for a whopping $10 billion

Microsoft is reportedly planning to acquire gaming-focused chat software and platform Discord for a whopping $10 billion, as per Bloomberg. The software and gaming giant Microsoft wants to buy Discord in order to upgrade its communication programs. But, as reported by VentureBeat, the problem is that several other buyers have also shown interest in buying the San Francisco-based company.

Bloomberg first broke the news that, if the deal struck between both parties, then it could cost more than $10billion after multiple buyers (like Epic Games and Amazon) have expressed their interest. Xbox chief Phil Spencer is said to be in talks with Discord, but no deal has been confirmed just yet. However, other sources have also suggested that Discord will more likely go public than seek an acquisition.

As per The Wall Street Journal, Discord has about 140 million monthly users and made $130 million in revenue last year. And as per Tech Crunch, it was valued at $7billion in December.

Launched in 2015, Discord is built initially for gamers, but now due to pandemic it is increasingly being used by YouTubers, podcasters, hackers, online educators and has more than 250 million registered users. It offers both free and paid ($9.99 monthly) services to its users.

Acquiring Discord would be a big step for Microsoft and its second big deal within the past year, after completing its acquisition of ZeniMax Media (Bethesda Softworks, id Software, and Arkane Studios) for $7.5billion earlier this month.