The fast-growing gamer chat platform Discord is in talks with Microsoft about an acquisition that the company values at about $ 10 billion, according to several reports.
None of the companies would comment on the accounts in Venturebeat and Bloomberg.
The deal would strengthen Microsoft’s position in the video game sector, which has exploded since the start of the coronavirus pandemic in early 2020. The tech giant’s Xbox platform is a top console, and last year the company raised $ 7.5 billion for ZeniMax Media and its game. publisher, Bethesda Softworks.
Discord has other strategic options besides being bought, Bloomberg pointed out, one of which would be to publish in a market that has been favorable for IPOs in recent times. According to Crunchbase, the company has raised nearly $ 500 million in start-up capital so far. The total includes $ 100 million last year at a valuation of $ 7 billion.
Discord, founded in 2015, claims to have 100 million users. It initially only served gamers, but gained extra traction and notoriety in 2017 as a platform used by white supremacists planning a rally in Charlottesville, VA. In 2020, following nationwide protests against racial injustice caused by George Floyd’s assassination, the startup set out initiatives aimed at curbing the use of dissent by hate groups.
In addition to facilitating audio chats among various people playing popular games such as Call of DutyDisagreement facilitates other social discussions. It earns money by selling subscribers and also getting a piece of game sales as far as the platform is concerned.
Investors, who have pushed Microsoft shares to an overall, split high of $ 246.13 in recent weeks, apparently did not immediately respond to reports of a deal. Shares in the company closed at $ 237.58, a fraction.