Report: Microsoft Plans to Swallow Up Gaming App Discord for $10B

According to a recent report, tech giant Microsoft is in talks to acquire video-game chat community app Discord for more than $10 billion.

Bloomberg reports that tech giant Microsoft is in talks to acquire Discord Inc., the makers of a popular video and audio call service centered around the gaming community. Discord has reportedly been talking to potential buyers and Microsoft is currently in the running but no deal has been reached yet.

According to some sources, Discord is more likely to go public than sell itself. Discord is best known for its free service that allows gamers to develop communities and talk via video, voice, and text. During the pandemic, Discord has increasingly been used for study groups, dance classes, book clubs, and other virtual gatherings.

Microsoft has been shopping for new assets to purchase for some time now, looking to purchase the social-media app TikTok last year and holding talks to acquire Pinterest.

Discord reportedly reached out to Microsoft to gauge interest in a purchase and Microsoft Xbox chief Phil Spencer has been talking to the firm. It was reported by VentureBeat earlier on Monday that Discord was in talks to sell itself.

Discord raised $100 million at a $7 billion valuation last year, according to Pitchbook. Discord has also held discussions with Epic Games and Amazon in the past, according to two sources. Microsoft, Discord, Epic, and Amazon did not respond to requests for comment from Bloomberg.

In January, Breitbart News reported that Discord banned the r/WallStreetBets server amidst the incredible rally of GameStop stock due to the WallStreetBets subreddits influence. Discord did not ban the community’s server for financial manipulation but for “hate speech.”

Discord told the Verge that the server was banned because it continued to allow “hateful and discriminatory content after repeated warnings.” The Verge alleges that it gained access to the server and confirmed that slurs and offensive language were used by some members of the server.