Discord Has Reportedly Ended Talks With Microsoft
Microsoft's hopes of world domination have hit a speed bump, as talks between the gaming giant and community platform Discord have broken down. According to sources, Microsoft wanted to add Discord to its growing list of new acquisitions, however, Discord ended talks early and pulled out of negotiations.
Following the massive $7.5 billion acquisition of ZeniMax Media and the Bethesda catalogue, Microsoft apparently has just enough change left to try and buy Discord. Sadly, it doesn't sound like it'll be a union for the ages - for now.
Despite going live in 2015, Discord has become the go-to place for gaming communities, work chat, and just general community creation. During the pandemic and through into 2021, Discord is a company that has continued to boom. With this in mind, it makes sense that Microsoft's Phil Spencer wants to welcome it to the family.
What happened when Microsoft tried to buy Discord?
According to The Wall Street Journal, Microsoft put an eye-watering $10 billion on the table to buy Discord, which would've soared past the equally impressive Bethesda deal. The site explains, "those talks ended without a deal", with Discord now thought to be seeking a potential public offering. While this isn't great news for Microsoft, WSJ goes on to say the talks "could be rekindled in the future".
Apparently, there were offers from three big companies (Microsoft included), however, Discord wants to remain independent for now. The Discord deal falling through comes after Microsoft's high-profile bid to buy TikTok last year. It's clear the company is on a spending spree and is trying to become a global superpower in the tech world. Even though a $10 billion Discord bid sounds like an insane amount of money, Microsoft Corp is currently estimated to be worth $2 trillion and sits alongside only a handful like Amazon and Apple to break into the trillion-dollar club.
What's next for Microsoft and Discord talks?
For the time being, Discord continues to branch out on its own. How many of you right now have Discord open on your mobile, laptop, or PC? With an ever-increasing number of users, buying Discord could be a lucrative purchase for anyone who manages to crack the company's current stance. Although it's unclear what happens next, we're guessing Microsoft will start trying to up its offer to entice Discord over the green side.
Discord apparently doubled its monthly user base to 140 million during the pandemic. If this wasn't enough, revenue was up from $45 million in 2019 to $130 million last year. We can only imagine these numbers have continued to climb as Discord grows bigger by the day. Discord hypes itself as offering better audio quality than Xbox and Skype's chat services, meaning Microsoft buying it would be a major win.
Let's remember that Microsoft has a long history of buying up other big companies. Despite being reportedly laughed at when trying to buy Nintendo before the release of the Xbox, Microsoft successfully bought Skype for $8.5 billion in 2011, Mojang for $2.5 billion in 2014, and the record-breaking acquisition of LinkedIn for $26.2 billion in 2016. Discord might sound like a small fish in a big pond, but don't underestimate how much Microsoft wants it and how deep the company's pockets are.
Stay up to date with all the latest esports and gaming news by checking out our social channels here: Twitter | Facebook | Discord
Images via Microsoft | Discord
