It seems like Discord will have new ownership soon. Several companies were engaged in negotiations but a new report suggests that Microsoft is indeed the frontrunner and should have the deal finalised sometime next month.
According to sources speaking with The Wall Street Journal, Microsoft is now in “exclusive” negotiations with Discord, meaning negotiations with rival companies have been dropped and the two parties are focussing on crafting the deal, which could be finalised in April.
Discord itself was valued at $3 billion in 2020, but Microsoft is reportedly going to pay a hefty premium to acquire the company, with a $10 billion buyout offer. Such a move would likely see Discord integrated on consoles, in addition to maintaining the PC and web applications.
Discord itself saw revenue spike during the COVID-19 pandemic, with revenue tripling last year. However, Microsoft doesn’t have a good track record with communication platforms, as we’ve seen with Skype, which has become a shell of its former self since the rise of Discord, Zoom and other competitors.
KitGuru Says: I would have expected Amazon to be more engaged in these discussions due to the relationship Discord has with Twitch, but so far, all signs are pointing towards Microsoft acquiring the company. Hopefully some lessons have been learned since the Skype acquisition a decade ago.