Microsoft Corp. is in negotiations to acquire Discord Inc., a video game chat community, for more than $ 10 billion, according to people familiar with the matter.
Discord has been talking to potential buyers, and software giant Microsoft is competing, but no deal is imminent, said the people, who asked not to be named because the discussions are private. Discord is more likely to go public than to be sold, one person said. Representatives for Microsoft and Discord declined to comment.
San Francisco-based Discord is best known for its free service that allows players to communicate via video, voice and text, and people trapped at home during the pandemic are increasingly using their technology for study groups. , dance classes, book clubs and other virtual meetings. Microsoft, which last year sought to buy social media app TikTok and held talks to acquire Pinterest Inc. has been looking for assets that provide access to thriving user communities, according to people familiar with the company’s thinking.
Discord contacted Microsoft to assess the interest, and Microsoft’s Xbox boss Phil Spencer has been talking to the company, according to one person. VentureBeat reported on Monday that Discord was in talks to sell itself. The company raised $ 100 million in a $ 7 billion valuation last year, according to Pitchbook.
Discord has also had discussions with Epic Games Inc. and Amazon.com Inc. in the past, according to two people familiar with the matter. Epic and Amazon did not immediately respond to requests for comment.
(Updates with details on company plans starting in the third paragraph)