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Microsoft in talks with Discord over $10 billion-plus acquisition: report

Microsoft in talks with Discord over $10 billion-plus acquisition: report

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Discord was recently valued at $7 billion

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Illustration by Alex Castro / The Verge

Microsoft is in discussions with Discord to acquire the gaming-focused chat software for more than $10 billion, according to sources talking to Bloomberg. Xbox chief Phil Spencer is said to be talking to Discord about the potential deal.

VentureBeat reported earlier today that Discord was exploring a $10 billion-plus sale after multiple potential buyers expressed interest, and that it had signed an exclusive acquisition discussion with one party, suggesting a deal could be close. Bloomberg’s sources say the deal isn’t imminent, however, with one person saying Discord would be more likely to take itself public than seek an acquisition.

Bloomberg names Epic Games and Amazon as companies that have also held discussions with Discord in the past.

Discord has about 140 million monthly users and made $130 million in revenue last year, The Wall Street Journal recently reported, though the company isn’t yet profitable. Its last valuation was $7 billion after a funding round in December generated $100 million.

Discord’s software is free for most users, but the company makes money through $9.99 monthly Nitro subscriptions that offer more advanced features like higher resolution screensharing, extra sticker packs, and larger upload limits.