Microsoft Corp is acquiring According to people familiar with Discord Inc., a video game community, for more than $ 10 billion.
Discord has spoken to potential buyers, and software giant Microsoft is underway, but no deal is imminent, say the people who asked not to be identified because the discussions are private. Disagreement is more likely to become public than to sell itself, one person said. Representatives from Microsoft and Discord declined to comment.
San Francisco-based Discord is especially known for its free service that allows gamers to communicate via video, voice and text, and people sitting at home during the pandemic are increasingly using the technology for study groups, dance classes, book clubs and other virtual gatherings. Microsoft, which wanted to buy a social media app last year TikTok and conversations held to acquire Pinterest Inc., has acquired people familiar with the company for assets that provide access to thriving communities of users.
Disagreement prompted Microsoft to express interest, and Phil Xbox, head of Microsoft Xbox, spoke to the company, according to one person. VentureBeat reported earlier Monday that Discord was in talks to sell itself. According to Pitchbook, the company raised $ 100 million last year at a valuation of $ 7 billion.
Discord has also held talks with Epic Games Inc. in the past. and Amazon.com Inc., according to two people familiar with the matter. Epic and Amazon did not immediately respond to requests for comment.
(Updates detailing business plans starting in the third paragraph)