Coalition Microsoft Aprilstreetjournal – The Wall Street Journal reported on Sunday that Microsoft is in talks to acquire Discord, a voice and text chat app popular with gamers, in a deal that could value the company at more than $10 billion.
Microsoft declined to comment on the report. Discord didn’t immediately respond to a request for comment.
The move would be a major bet on the gaming industry for Microsoft, which has been aggressively expanding its gaming business in recent years. The company launched its Xbox Series X and S consoles last November and acquired game developer Bethesda Softworks for $7.5 billion in September.
Discord has more than 100 million monthly active users and is popular with gamers, who use the app to chat with friends while playing games. The app has also become a hub for online communities for a variety of topics, from politics to knitting.
Microsoft has been trying to boost its presence in the gaming industry for years. The company has invested billions of dollars in building a gaming business that includes its Xbox consoles, game studios and, most recently, its xCloud game-streaming service.
The company has been in talks to buy Discord for more than a year, according to people familiar with the matter. The talks have picked up in recent weeks and the deal could be announced as early as this week, the Journal reported.
Under the terms of the deal being discussed, Discord would operate as an independent company, similar to how Microsoft has structured its acquisitions of LinkedIn and GitHub, the Journal reported.
Microsoft has a history of acquiring companies in hot sectors and then turning them into big businesses. The company’s $26.2 billion acquisition of LinkedIn in 2016 turned the professional networking site into a major part of Microsoft’s business. And its $7.5 billion purchase of GitHub in 2018 turned the code-sharing service into a central part of its developer tools business.
If Microsoft acquires Discord, it would be the company’s second-largest acquisition after its $27 billion purchase of LinkedIn.
The gaming industry has been one of the few bright spots in the tech sector during the pandemic as people stay home and look for ways to entertain themselves. Gaming apps have soared in popularity and the industry is expected to hit $159 billion in revenue this year, up 9% from 2020, according to research firm Newzoo.
Discord would give Microsoft a valuable new platform to reach gamers and expand its gaming business. The company has been trying to boost its presence in the gaming industry for years. The move would also be a bet on the continued popularity of gaming during the pandemic and beyond.
Related FAQs
1) Why is Microsoft considering acquiring Discord?
Microsoft is considering acquiring Discord in order to boost its presence in the gaming industry. The move would also be a bet on the continued popularity of gaming during the pandemic and beyond.
2) What is Discord?
Discord is a voice and text chat app popular with gamers. The app has also become a hub for online communities for a variety of topics, from politics to knitting.
3) What is the value of Discord?
The Wall Street Journal reported that the company could be valued at more than $10 billion.
4) What is Microsoft’s history with acquisitions?
Microsoft has a history of acquiring companies in hot sectors and then turning them into big businesses. The company’s $26.2 billion acquisition of LinkedIn in 2016 turned the professional networking site into a major part of Microsoft’s business.
5) What is coalition microsoft aprilstreetjournal?
This is a potential acquisition of Discord by Microsoft which was reported by the Wall Street Journal in April 2021.
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