Microsoft in talks to buy Discord for more than $10 billion

Microsoft Corp. is in talks 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 in the running, but no deal is imminent, said the people, who asked not to be identified because the discussions are private. Discord is more likely to go public than sell itself, one person said. Representatives for Microsoft and Discord declined to comment.

San Francisco-based Discord is best known for its free service that lets gamers communicate by video, voice and text, and people stuck at home during the pandemic have increasingly used its technology for study groups, dance classes, book clubs and other virtual gatherings. Microsoft, which last year sought to buy social-media app TikTok and held talks to acquire Pinterest Inc., has been shopping for assets that would provide access to thriving communities of users, according to people familiar with the company’s thinking.

Discord reached out to Microsoft to gauge interest, and Microsoft Xbox chief Phil Spencer has been talking to the company, according to one person. VentureBeat reported earlier on Monday that Discord was in talks to sell itself. The company raised $100 million at a $7 billion valuation last year, according to Pitchbook.

Discord has also held discussions with Epic Games Inc. and Amazon.com Inc. in the past, according to two people familiar with the matter. Epic and Amazon didn’t immediately respond to requests for comment.

COMMENT NOW