Microsoft Corp. is in advanced talks to acquire the Discord Inc. messaging platform. for $ 10 billion or more, according to people who know the subject, while the software giant tries to delve deeper into its consumer offering.
Microsoft and Discord are holding exclusive talks and could conclude a deal next month, assuming negotiations do not unravel, people said.
Originally favored by players, San Francisco-based Discord offers voice, text and video chats. The platform’s popularity has increased since the pandemic consolidated as people stayed home and connected online, as did other chat services, such as Facebook Inc.’s WhatsApp. and Signal Messenger LLC. Discord has been considering a IPO.
Microsoft, which has a market value of more than $ 1.7 trillion, has been looking for an acquisition that would help it reach more consumers. Last summer he held talks to buy the popular TikTok video-sharing app amid a high-profile geopolitical confrontation sparked by the Trump administration, before abandoning the effort.
VentureBeat reported this week that Discord was exploring a sale and had entered into exclusive discussions with an unnamed suitor.