San Francisco, March 23 (IANS) In a bid to enter the competitive social media market, Microsoft may acquire popular chat and communications platform Discord for more than $10 billion, the media reported.
According to a GamesBeat report citing sources, Discord is “going through a sales process now that could result in a purchase of the communications and chat platform for much more than $10 billion”.
“One source said the company has signed an exclusive acquisition discussion with one party, meaning it is in final negotiations about a sale”, the report said late on Monday.
The news came as Discord raised $100 million in December last year at a $7 billion market valuation.
Popular among the teenagers globally including in India, the chat and communications platform currently has 140 million monthly active users (MAUs) — double the number it had a year ago.
Discord connects game companies with their fans in audio and text chat communities.
A spokesperson for Discord “declined to comment on rumours or speculation”. Microsoft also did not comment on the report.
Discord was publicly launched in May 2015 under the domain name discordapp.com.
Microsoft announced in April 2018 that it will provide Discord support for Xbox Live users, allowing them to link their Discord and Xbox Live accounts so that they can connect with their Xbox Live friends list through Discord.
According to media reports, Xbox chief Phil Spencer is said to be talking to Discord about the potential deal.
In December 2018, Discord announced it raised $150 million in funding at a $2 billion valuation.
Starting in June 2020, Discord announced it was shifting its focus away from video gaming to a more all-purpose communication and chat client for all functions, revealing its new slogan “Your place to talk” and a revised website.
Discord is in direct competition with invite-only chat app Clubhouse, which recently raised $100 million at a valuation of $1 billion.