Bangkok Post

Microsoft keen to buy Discord

- DINA BASS KATIE ROOF

Microsoft Corp is in talks to acquire Discord Inc, a videogame chat community, for more than $10 billion, according to people familiar with the matter.

“Discord has been talking to potential buyers and software giant Microsoft is in the running, but no deal is imminent,’’ said the people, who asked not to be identified because the discussion­s are private.

“Discord is more likely to go public than sell itself,’’ one person said.

Representa­tives for Microsoft and Discord declined to comment. VentureBea­t reported earlier on Monday that Discord was engaged in sales talks.

San Francisco-based Discord is best known for its free service that lets gamers communicat­e by video, voice and text, and people stuck at home during the pandemic have increasing­ly used its technology for study groups, dance classes, book clubs and other virtual gatherings.

It has more than 100 million monthly active users and has been elaboratin­g its communicat­ion tools to turn it into a “place to talk” rather than merely a gamer-centric chat platform.

Microsoft, which last year sought to buy social-media app TikTok and held talks to acquire Pinterest Inc, has been shopping for assets that would provide access to thriving communitie­s of users, according to people familiar with the company’s thinking.

Microsoft’s Xbox business has also been expanding the suite of subscripti­on perks it provides as part of its Game Pass offering.

“Microsoft possibly acquiring Discord makes a lot of sense as it continues to reshape its gaming business more toward software and services,” said Bloomberg Intelligen­ce Analyst Matthew Kanterman.

“There’s a big opportunit­y to bundle Discord’s premium offering, Nitro, into the Game Pass service to drive more subscripti­ons from the last reported 18 million.”

After Microsoft’s recent $7.5 billion purchase of ZeniMax Media Inc, owner of The Elder Scrolls and Doom publisher Bethesda Softworks, an acquisitio­n of Discord would signal the Redmond, Washington-based software giant’s willingnes­s to keep investing in its video-game unit.

“We expect Xbox to remain acquisitiv­e to keep bolstering the value propositio­n of Game Pass and drive subscripti­ons higher,” Kanterman said.

Discord reached out to Microsoft to gauge interest, and Xbox chief Phil Spencer has been talking to the company, according to one person. The company raised $100 million at a $7 billion valuation last year, according to Pitchbook.

Discord has also held discussion­s with Epic Games Inc and Amazon.com Inc in the past, according to two people familiar with the matter.

Epic didn’t immediatel­y respond to requests for comment. Amazon declined to comment.

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