Microsoft is in talks with Discord to acquire gaming-oriented chat software for more than $ 10 billion, according to sources who spoke to Bloomberg. Xbox boss Phil Spencer would be talking to Discord about the possible deal.
VentureBeat reported earlier today that Discord was exploring a sale of more than $ 10 billion after several potential buyers expressed interest, and that it had signed an exclusive acquisition discussion with one of the parties, suggesting that a deal could be closed. Bloomberg sources say the deal is not imminent, however, with a person saying that Discord would be more likely to go public than to seek an acquisition.
Bloomberg cites Epic Games and Amazon as companies that have also had discussions with Discord in the past.
Discord has about 140 million monthly users and earned $ 130 million in revenue last year, Wall Street Newspaper recently reported, although the company is not yet profitable. Its last valuation was $ 7 billion, after a financing round in December generated $ 100 million.
Discord software is free for most users, but the company makes money from $ 9.99 monthly Nitro subscriptions, which offer more advanced features like higher resolution screen sharing, extra sticker packs and upload limits bigger.