Discord ends takeover talks with Microsoft, sources claimed

Discord ends takeover talks with Microsoft, sources claimed

Reports of acquisition talks between Microsoft and Discord emerged earlier in March.

Discord saw an influx of new users amid the pandemic. This has since boosted the app’s popularity even among those who are not gamers.

Following the continued rise of the messaging application, Microsoft was said to be looking into acquiring the company. Sources previously claimed that they were approaching a deal with the chat app, with others insisting that it would push through this month.

However, people familiar with the matter stated that Discord rejected the offer. Comic Book reported that the acquisition and takeover talks are now over.

Discord remains independent

The assertions came from Bloomberg on Wednesday. As reported, the video-game chat company ended the deal with Microsoft despite having an offer amounting to $12 billion.

Aside from Microsoft, Discord has also reportedly denied other offers from Amazon and Epic Games. They are instead “going to remain independent for the time being.”

Other publications noted, though, that a similar deal might still happen in the future. Nevertheless, the messaging app company will likely focus on its own to expand in new ways.

Discord remains independent

Why Microsoft wants Discord

The Wall Street Journal reported in March that Microsoft is in “exclusive talks” with Discord in hopes of acquiring the chat app. It is not surprising that the latter has become the company’s “latest acquisition target” considering its apparent rise these past few months.

But, The Verge asserted that there is a more pressing matter why Microsoft wants Discord, Inc. As claimed, they want their own “community.”

The publication explained that outside of Xbox, Microsoft “does not have a huge consumer-facing community,” unlike its rivals. Google has YouTube, Amazon has Twitch, and Facebook has both Instagram and Whatsapp.

The company tried, however, with TikTok and Pinterest. However, they failed to acquire the two platforms prior to the talks with Discord.

If the acquisition pushed through, the chat app company would then have provided Microsoft access to its more than 140 million active users. These include members who are active YouTube users, as well as other creators, influencers, and gamers.

Bigger plans on the horizon

It remains unclear what Discord, Inc. plans to do in its independence. But, reports said that they are seemingly interested in “going public.”

This comes after they have brought in a finance chief to ready the company’s potential IPO. This will likely help them generate more capital in the future for the platform and product improvements.

Discord was able to bring in over AU$166.9 million in 2020. Despite this, though, they were still not able to generate profit. Accordingly, a publicly-traded operation may likely change the tune, helping the company to stir the movement of the money inward.

 

Images courtesy of Discord/YouTube

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