A crazy rumor was circulating a few weeks ago about a possible takeover of Discord by Microsoft. Discord is not as well known to the public as WhatsApp or Telegram. It is a messaging service that now has 140 million users per month and is particularly popular with young gamers.
Microsoft’s acquisition of Discord would have made a lot of sense
The rumor was very relevant as Microsoft has been very interested in platforms and communities over the past few years and has already spent billions of dollars buying LinkedIn and GitHub. Microsoft also wanted to buy TikTok’s American operations.
A takeover of Discord would have allowed Redmond to control another community. On the other hand, Discord would complement Microsoft’s Xbox activity.
These rumors were never confirmed by either party. However, according to multiple sources, Microsoft would have been willing to pay more than $ 10 billion to acquire Discord.
A project that failed?
Unfortunately (or not), the buyout plan would have failed. This is indicated by a new article in the Wall Street Journal (via The Verge) citing sources in the dossier. According to this new rumor, the discord would have ended the negotiations. Nevertheless, a change of opinion would still be possible.
Although it is very popular, the app is not yet profitable. To support the growth, Discord reportedly considered two options: either bought out by another larger company or publicly traded.
Potential buyers included Microsoft, but also Amazon (which already owns the Twitch platform) and Epic, the developer of the Fortnite video game. However, according to the new rumor, Discord would ultimately have chosen to remain independent. Because of this, this company should be expected to go public unless there is another turnaround.
Discord is one of the applications that (like Zoom) saw strong growth in 2020
In any case, these rumors are floating around and Discord, like many other online services, saw strong growth despite the health crisis in 2020. “2020 was a year of rapid growth for Discord. We felt honored to be able to welcome many new people to our platform during the COVID-19 pandemic, ”said a post published by the company at the beginning of April.
“In December 2020, we announced that 140 million monthly active users were found on Discord – up from 100 million in June 2020. Along with the expansion of the user base, we’ve seen a gradual increase in monthly user reports of violations of our community guidelines . This growth was not caused by a significant change in any particular category, but rather by a general trend towards increasing reports in all categories, ”Discord also explained in this post.
In addition, the valuation of the company would have reached $ 7 billion after a $ 100 million fundraiser.
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