News Profit's Takes

Report: Talks Between Microsoft And Discord End

According to The Wall Street Journal, Discord is ending talks to sell itself to Microsoft or any other company at this time. In March, there were rumors that Microsoft was attempting to buy the gaming chat firm for about $10 billion.

Bloomberg says Discord reportedly rejected a $12 billion offer from Microsoft according to the publication’s sources that are close to the matter. Bloomberg also said that other companies that made bids to try and buy the platform include Amazon and Epic Games.

Discord registered 300 million users in 2020 and recorded roughly $130 million in revenue. Despite these figures, The Wall Street Journal reports that Discord is still not profitable.

Discord is a chat app used by gamers launched in 2015. However, the company has been expanding its reach to Youtube personalities, podcasters, and more since it was founded. The company says that it counts more than 250 million users.

The Profit‘s Take:

No surprise that these talks broke down. In the context of recent gaming IPOs, Discord surely knew they were worth a lot more than $10B. It was my view that if Microsoft got Discord for $10B, it would go down as one of the best acquisitions of all time for them. I suspect Discord will go the IPO route, and likely command a $20B+ valuation.

(All information was provided by Bloomberg, The Verge, CNETVenture Beat, and Business of Apps)

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