Report suggests Microsoft’s next acquisition could be Discord

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There’s a hole in Microsoft’s pocket or at least there appears to be given how quickly the firm is spending money.

Having just spent $7.5 billion to acquire ZeniMax Media, a report suggests Microsoft is looking to acquire Discord, the platform for gamers and everybody else.

The report comes from Bloomberg which said that Microsoft could purchase the platform for $10 billion according to “people familiar with the matter”.

It’s a bit convoluted but it makes sense so stick with us.

For one, Discord is a valuable company. In December 2020 the firm raised $100 million in funding on the back of reaching 140 million monthly active users. That’s not a lot in the greater scheme of things but back in December Discord had a value of $7 billion.

But is Discord looking to sell it’s hugely successful platform? Maybe.

As VentureBeat reports, Discord could simply be shopping around to see what it could fetch although with the price tag of $10 billion, the suitors it might attract could be counted on one hand. The platform has reportedly tapped up Qatalyst Partners to assist with a potential acquisition.

So why is Microsoft the name behind the rumours?

For one, Microsoft has shown that it’s not averse to investing in its gaming division but Discord offers more than just a way to connect gamers.

The other potential buyers are Amazon, Twitter and Google and while those also make sense, Microsoft could make use of Discord’s underlying technology to improve its existing communication apps Skype and Teams.

Discord allows for a multitude of communication methods whether that be voice, video or text and it’s rather stable.

There’s also the matter of Teams becoming ever more popular during the pandemic.

What better way to capture the communication market than by having Teams, Skype and Discord under your wing?

Of course, Discord might not sell and at all and may instead launch an initial public offering and take the company public.

It’s clear that Discord is a hot property at the moment and whether it’s acquired or simply goes public, it’s worth keeping your eye on the the Wumpus.

Brendyn Lotz

Brendyn Lotz

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.

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