Almost a month ago it was revealed that the popular online chat service Discord was apparently up for grabs when multiple parties were interested in buying them out, including Microsoft with a $10 billion offer. However, according to a new report, Discord has halted all offers at the moment as they reconsider their options.
There’s still no official statement yet, but the new report suggests that Microsoft and Discord were in “advanced talks”, but ultimately Discord has chosen to halt those talks as they weigh their own options - including possibly going public - although they could continue again at some point in the future.
If talks do resume in the future, however, then it would be a big win for Microsoft. Discord is a much preferred communication platform among gamers, and would certainly compliment the Xbox ecosystem very well. It would also be a big win for the tech giant considering they lost out on acquiring TikTok last year.
Either way, Discord is having to make a big decision here. Although the company’s value had doubled from $3.5 billion to $7 billion within 6 months last year - and even raked in $140 million of revenue in 2020 (a 188% increase year over year) - it is still losing money. Their strategy currently is focusing on growth rather than profits at the moment.
Though that would not be a problem for Microsoft, given the $10 billion deal would only amount to 0.5% of their market value, which is currently at close to $2 trillion. So the tech giant has a little bit of pocket money to spend to say the least.
What do you think? Should Discord go public? Or would a Microsoft acquisition be a good thing? Which deal do you think Discord would take? And what are the benefits of either? Let us know!