Discord may be worth more than $10 billion.
VentureBeat reported that Microsoft is negotiating with Discord, a chat platform that lets gamers talk while they play video games. The Windows maker is reportedly offering Discord to buy it for $10 billion.
But Microsoft isn’t the only interested buyer. Because the platform received several offers, Discord explores its options for a sale. The company is in a state where it could command higher than its valued amount.
One source said that it’s now in final discussion with one party. It could be Microsoft.
In December, the platform is valued at $7 billion. But the sale offer is more than that.
Why Do Companies want to Buy Discord?
Discord can be a strategic platform. It connects several game companies with their fans in text and audio communities.
However, Discord may still decide not to sell itself. The decision will hinge on the CEO if he thinks that Discord can better function as part of another company.
The company may also elect not to sell and take itself public.
Besides Microsoft, Epic Games and Amazon also showed interest in buying the chat platform. But that was in the past.
Currently, the platform has over 140 million monthly users. Last year, it aggregated $130 million in revenue. But with such an amount, experts said that it’s not that profitable.
Although the software is free for the majority of its users, it makes money through its Nitro subscriptions that cost $9.99 per month. The paid services include advanced features with larger upload limits.
But why would Microsoft be interested in buying Discord?
There are plenty of candidates to buy Discord. Facebook could be one. However, it’s currently facing anti-trust investigation along with Apple, Google, and Amazon.
It leaves Microsoft as the last contender. The company creates Xbox and Discord allows linking Xbox account to its platform. Plus, Microsoft has the money to buy it.
Microsoft is still buying more gaming-focused platforms, even though it just purchased ZeniMax Media this month.
The chat platform launched in 2015. It became an excellent alternative to Ventrilo, Mumble, and other VoIP programs. Online gamers want a chat program that lets them communicate with other players. And Discord has the right platform to offer low-latency VoIP.
Currently, it has instant messaging features, along with chat rooms, video calls, and Xbox interaction. It also allows users to join a maximum of 100 servers simultaneously.
Users can easily open a private channel to discuss just anything. The channel will have voice chat and image hosting functionalities.
It’s not the first time that Discord has put itself up for sale. It has done it in 2018. But it chose to stay independent. It may also decide to remain independent now, despite the significant offer from various companies.
However, if this platform chooses to sell itself, it could be a tremendous shift in the gaming world. If it decides to accept the Microsoft offer, the Windows maker can boost its status in the gaming landscape.