Microsoft has entered discussions with Discord to acquire the gaming-centered chat software. The deal is to reportedly cost at least $10 billion, according to Bloomberg.
The Bloomberg report says that Xbox chief, Phil Spencer, is said leading the discussions with Discord about the potential acquisition. A report in VentureBeat had earlier stated that Discord was considering a $10 billion-plus sale after multiple potential buyers expressed their interest in the company.
The report also says that it had signed an exclusive acquisition discussion with one of the potential buyers. This suggests a deal could be on the horizon. Bloomberg says both Epic Games and Amazon are among the companies Discord has held discussions with Discord in the past.
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Bloomberg however says that the deal isn’t imminent. One of its sources also says that the company would be more likely to take itself public than seek an acquisition.
Discord has not recorded any profit yet, so profitability will be on the top agenda of Microsoft if it completes the acquisition. The company makes money through $9.99 monthly Nitro subscriptions but it’s free for most users. The Nitro subscription gives users features like higher resolution screen sharing, extra sticker packs, and larger upload limits.
The company has about 140 million monthly users and a revenue of $130 million in 2020, according to The Wall Street Journal recently reported. After its last funding round in December 2020, the company was valued at $7 billion. The funding round helped the company generate $100 million.
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