Discord has ended takeover talks with Microsoft and rejected the offer, reports the Wall Street Journal. The Messenger service wants to go public instead. The conversations had been recorded about a month ago. Microsoft reportedly offered more than $10 billion for Discord.
Microsoft was not the only interested party. According to the Wall Street Journal, at least three other companies were interested in talks to take over Discord. Previously, Discord had made a bid for the company, according to Bloomberg’s Discord had also been in talks with Amazon and Epic Games. Although talks with Microsoft over the 10 billion offer have ended for now, a return to the negotiating table is not ruled out.
Discord has grown significantly recently
Discord doubled its monthly user numbers to around 140 million last year, especially as life increasingly moves online in pandemic times. In 2020, Discord generated $130 million in revenue, nearly three times as much as in 2019. However, the messenger service still does not operate profitably.
Last month, Discord hired Tomasz Marcinkowski as its first finance director, in what is seen as preparation for a borsengang. Marcinkowski joins from Pinterest, where he can point to significant growth after five years as chief financial officer. Pinterest went public in April 2019.
Messenger for more than gaming
Discord was developed by Jason Citron and Stan Vishnevskiy and released to the public in 2015. Initially, it was a platform on which mainly gamers communicated – not only during the game itself. Text, voice and video chats are available. Central to this are small communities in which users can join together according to their interests. Our site also operates such a Discord community. The target group is now no longer limited to gaming.
A takeover of Discord had fit Microsoft’s ecosystem around the Xbox consoles. The U.S. company has a long history of buying successful Internet services that have rough user communities. In 2016, Microsoft acquired business network LinkedIn for more than $26 billion, followed in 2018 by software development platform GitHub for $7.5 billion.
Billion-dollar takeover bids for video app TikTok and online pinboard Pinterest have failed in recent months, however. Microsoft is probably aiming to bring rough online communities to its own Azure platform, among other things, in part to harvest usage data for other business areas.