Published , by Chris Jarrard
Published , by Chris Jarrard
Despite a host of rumors swirling around Discord and a third-party acquisition over the last few weeks, the online voice chat firm has chosen to suspend talks with potential suitors and instead focus on an initial public offering. Microsoft was believed to be one of Discord’s top suitors and considering a reported $10 billion dollar deal.
Microsoft has long been in pursuit of communications-focused acquisition targets over the last few years. The global pandemic and its effects on telecommunications likely hastened this drive within Microsoft. It entertained the idea of placing a bid on TikTok last year prior to the Trump Administration interference in talks.
Just last month, the Wall Street Journal reported that Microsoft was in hot pursuit of a Discord acquisition. According to reports, at least two other companies were also involved in a potential acquisition of Discord before the company opted to remain independent.
Discord is well-known for its deep integration into the gaming industry, but its growing collection of online communities made for an attractive target for Microsoft, which has failed to establish a similar online presence for groups thus far. Its Teams software has potential but has yet to experience the growth Microsoft had hoped for at the time of this writing.
Discord has around 140 million monthly users and earned about $130 million in revenue in 2020, but still isn’t profitable, according to the Wall Street Journal.