Microsoft Corp. is in advanced negotiations to acquire the messaging platform Discord Inc. for $ 10 billion or more, according to people familiar with the matter, while the software giant seeks to deepen its consumer offerings.
Microsoft and Discord are in exclusive negotiations and may close a deal next month, as long as the negotiations do not fall apart, people said.
Originally preferred by gamers, the San Francisco-based Discord offers voice, text and video chat. The platform’s popularity has increased since the pandemic, as people stay at home and connect online – just like other chat services like WhatsApp and Signal Messenger LLC from Facebook Inc .. Discord is considering an IPO.
Microsoft, which has a market value of more than $ 1.7 trillion, is looking for an acquisition that will help it reach more consumers. Last summer, she held talks to buy the popular video-sharing app TikTok amid a high-profile geopolitical stalemate caused by the Trump administration, before abandoning the effort.
VentureBeat reported this week that Discord was exploring a sale and entered into exclusive discussions with an unidentified suitor.