Audio chat startup Discord Inc has reportedly halted talks of being bought by a number of companies, one of which is Microsoft Corp. The company prefers to remain independent and intends to IPO.
Microsoft is known to have made a bid to Discord of up to USD12 billion. However, the offer did not reach an agreement although it is possible to re-talk it in the future.
Microsoft, with a market value of nearly USD2 trillion, is trying to acquire companies that can help it reach more consumers. Last summer, the company explored an offer to buy the video sharing app, TikTok.
3 Companies Who Want Discord
Quoting The Verge, Discord is reportedly in talks with at least three companies other than Microsoft. Other potential applicants include Amazon and Epic Games.
Microsoft’s interest in Discord has a lot to do with the online community. The app is a destination for content creators who create forums as well as local groups centered on videos and games.
San Francisco-based Discord operates a free online platform for chatting via text, audio and video. Discord’s popularity has skyrocketed since the pandemic raged as people used it as a safe way to connect with friends and family.
Launching the WSJ, Discord claims the number of monthly users has reached 140 million. The company also generated revenues of USD130 million in 2020, up from nearly USD45 million in 2019.
Launched in 2015, Discord doubled its valuation to USD7 billion in its December 2020 funding round. Overall, the company has raised about USD480 million, according to Crunchbase data. Investors include Greenoaks Capital, Greylock Partners and Index Ventures.
