Microsoft is in talks to acquire Discord for more than $10 billion, though the communications platform could opt instead for an initial public offering (IPO), Bloomberg and Reuters report.
Discord is a voice, video, text and chat communications platform that had roughly 150 million active users as of December 2020. The company in late 2020 raised $100 million at a $7 billion valuation led by Greenoaks Capital with Index Ventures also participating, according to TechCrunch.
Discord's app is invite-only. The company's cloud servers are organized into topic-based channels. The platform is popular with school clubs, gaming groups, and the worldwide art community, Discord notes.
Microsoft Acquisition Targets, Cash Stockpile
Microsoft's M&A team apparently has been exploring consumer-focused applications that have social media components. Indeed, the cloud, enterprise and PC software giant approached Pinterest about a proposed $51 billion takeover but that deal didn't materialize, Financial Times reported in February 2021.
Microsoft has a big war chest for potential acquisitions. The company, backed by Azure and Office 365 momentum, in early 2020 had $134 billion in cash and debt of $87.1 billion -- for a net cash pile of $47 billion, according to Investors.com.
Microsoft Acquisitions Strengthen Azure Cloud Business
Recent Microsoft acquisitions include such tuck-in deals such as:
- The Marsden Group for IoT and industrial control software expertise;
- Affirmed Networks to power Azure with network functions virtualization (NFV) designed for mobile service providers & 5G wireless services.
- Metaswitch Networks for Azure-centric network virtualization, 5G & IoT capabilities.
- ADRM Software for Azure cloud data lakes; and
- CyberX for Azure and IoT security services.
Neither Microsoft nor Discord have commented about the rumored M&A discussions.
