Microsoft is now in talks to acquire Discord. Not only are these talks exclusive, but it looks like the deal may be complete by next month.
Previously, Bloomberg reported that Microsoft was ready to purchase Discord for a whopping $10 billion or more. Now, the Wall Street Journal has confirmed that report while offering us a few more details.
“Microsoft and Discord are in exclusive talks and could complete a deal next month, assuming the negotiations don’t fall apart.” This seems to be in line with Microsoft’s desire to expand beyond the console space, which is why they tried to acquire TikTok last year, though that deal never went through.
Discord has grown in popularity since its inception in 2015 and quickly became the primary way for gamers to communicate via text and voice. While Microsoft’s willingness to spend $10 billion or more to acquire Discord may seem extreme, Discord was recently valued at $7 billion, and its value is likely to only grow over time.
Acquiring Discord gives Microsoft a chance to lock down the primary communication platform for gamers. And Discord previously partnered with Xbox Game Pass to offer special perks, so there is a pre-existing relationship between the two companies.
The only issue is that most who use Discord now love the platform “as is.” And many gamers are concerned about changes that Microsoft may implement to the platform after their acquisition is complete.