Microsoft said to buy Discord for $10 billion

Social platform Discord is reportedly looking to sell the company in a buyout deal that could be worth as much as $10 billion.

Published Tue, Mar 23 2021 10:13 AM CDT   |   Updated Tue, Apr 20 2021 9:37 PM CDT

Social chat platform Discord is looking to sell, and reports say Microsoft is looking to buy the service for a substantial sum.

Microsoft said to buy Discord for $10 billion 344 |

Discord is following up on several acquisition offers and is currently in talks to sell the company to Microsoft, sources tell Bloomberg. Based on Discord's previous $7 billion valuation in December, the buyout could cost as much as $10 billion.

The acquisition makes sense for Microsoft, who has positioned its Xbox brand front and center to its core business. The Redmond-based titan recently purchased ZeniMax Media for $7.5 billion in the second-largest gaming buyout in history. Xbox has a billion-dollar ecosystem of gaming, services, and content, and Discord could be a neat way to wrap PC and console gaming together. Microsoft merged Xbox LIVE connectivity into Discord in 2018 Discord currently has 140 million active users and is one of the most powerful networks for engagement and social connectivity in the games industry.

Despite its reach and valuation, The Wall Street Journal reports that Discord pulled in $130 million in revenues throughout the entirety of 2020, which is less than some companies make in a single quarter. Microsoft, however, knows how to properly monetize its services and would likely use Discord to connect its multi-faceted gaming business rather than for direct revenues.

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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