Microsoft in Early Talks to Buy Discord for over $10 Billion

Gaming-focused chat platform Discord has recently reached out to potential buyers. Currently, multinational tech giant, Microsoft is in early talks to buy Discord for over $ 10 billion. Both Discord and Microsoft have a great influence on the gaming community around the world.

The potential acquisition for a figure of over $10 billion will open up new avenues for both entities to tap audiences beyond the gaming sphere. Although Discord is holding talks with other potential players apart from Microsoft, as of now, no deal is imminent.

Discord is also in discussion with Amazon and Epic Games.

COVID-19 impact on gaming companies

The dawn of the COVID-19 pandemic has improved the growth prospects of gaming organizations. Due to the lockdown and other restrictions, people have stayed home and leaned toward video games for entertainment.

According to the Newzoo Global Games Market Report, the global video game market is expected to be worth $159 billion in 2020. [1]

SEE ALSO: Sports Flick Secures Broadcasting Rights for Multiple Football Events

Microsoft and Discord’s potential deal

The acquisition of Discord will be a strategic one for Microsoft. If the deal goes through, Microsoft can make the most of the slack-platform’s operational model to connect with gaming communities worldwide.

Discord has grown in popularity among communities across a range of gaming platforms which include, mobile, PCs, and consoles. With this strategic move, Microsoft can improve its engagement with its Xbox community. Besides, Microsoft can also use this opportunity to transform Discord into a platform exclusive to Windows and Xbox gamers.

More about Discord

Discord is a messaging and voice-chat application that gained immense popularity during the pandemic. Due to the pandemic, at present, Discord has over 140 million active monthly users. The company raised around $ 100 million in June last year and investors valued the company at $ 7 billion in December 2020.

Launched in 2015, Discord was primarily designed for gamers to talk as they played. The news of a potential acquisition comes shortly after Discord announced former Pinterest exec Tomasz Marcinkowski as its first chief financial officer.

Source:

[1] Hall.S (2020) “How COVID-19 is taking gaming and esports to the next level” World Economic Forum [online] Available from:

https://www.weforum.org/agenda/2020/05/covid-19-taking-gaming-and-esports-next-level/

Karandeep V

Karandeep was born in Pune, Maharashtra, an upcoming metropolitan city in the Western region of India. While most members of his family are engineers, he had different ideas. He was more inclined toward exploring the non-technical aspects of a business, which is why he studied Bachelors of Business Administration at Symbiosis International University, Pune.  Having said that, his love for new and upcoming technologies remained intact, which is why he has written extensively about technology throughout his career. After a brief stint with a gaming company at the beginning of his career, he discovered that his love for writing was not temporary.  Being a tech geek, he always liked installing and playing around with new applications on his mobile devices and the home desktop. He was fascinated by how technology can simplify even the most mundane and complex tasks with just a few commands. He keeps a close eye on how businesses use different tools to streamline their operations to boost productivity and efficiency.  At ToolsMetric, he writes product reviews that cover the main features and specifications of different enterprise applications. The sheer amount of innovation and hard work that goes into building these tech solutions is one of the reasons why Karandeep loves reviewing these tools. Besides product reviews, he also writes interesting news articles and blogs that track the latest developments in the tech industry.  When he is not writing, you can find him rooted to his seat playing video games, watching movies, or supporting his favorite football team. Since his childhood, he has always loved to travel and explore new places. Traveling is a major part of his life due to a myriad of reasons such as experiencing new cultures, food, and traditions. His other hobbies include playing football, cooking, and running.  You can find him on LinkedIn here.

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