Report: Microsoft No Longer In Talks To Buy Discord

microsoft discord
Image: Kotaku

Last month, Bloomberg reported that Microsoft was in exclusive talks to acquire Discord. Today, according to a report in The Wall Street Journal, those talks are off.

Advertisement

Microsoft initially considered buying the popular chat and community platform for a figure north of $10 billion, but it wasn’t the only interested buyer. Per the Journal’s sources, Discord fielded conversations from at least three companies before entering exclusively into talks with Microsoft, meaning those other companies were SOL.

All of those talks are apparently off the table now, as Discord repositions itself for an initial public offering. The Wall Street Journal notes that “it is possible they could be rekindled in the future,” according to some of its sources.

In December, TechCrunch reported that Discord, which is used by more than 100 million people a month, whipped up an additional $100 million in funding, bringing its valuation to $7 billion—more than double what it was valued at six months prior.

When reached for comment by Kotaku, Microsoft didn’t immediately have any info to add. Discord declined to comment.

Staff Writer, Kotaku

DISCUSSION

Discord said they had $120M in revenue in 2020. That’s certainly a lot of money but they would need astronomical growth to get anywhere near $10B cumulatively in even a decade. That’s gonna require a lot of Nitro subs. It’s hard to understand how valuations work, or why Microsoft would be all that interested other than just wanting to buy the name. Obviously Microsoft services struggle to be intuitive thanks to the company’s design by committee philosophy, but across their many services, they collectively have the tech to replicate Discord functionality if they really wanted.