[UPDATED 3/23] Discord could potentially be sold for more than $10 billion, reportedly to Microsoft

Source: Discord

UPDATE 3/23: According to a report by Bloomberg, the buyer interested in purchasing Discord is Microsoft. 

 

 

 


Original story:

 

VentureBeat has reported that Discord has signed a deal for final negotiations of a sale. According to sources close to GamesBeat, the VoIP, instant messaging and digital distribution platform designed for creating communities could be sold for over $10 billion.

 

GamesBeat, the gaming editorial section for VentureBeat,  confirmed that one source said the following: “I know they are in active discussions with a select few parties. The market is in a state where they could command strong double-digit billions of dollars.”  When prompted to comment on the development, a representative of Discord declined to comment.

 

Discord enjoyed huge profits and significant growth within the past calendar year, but that growth comes with an asterisk when it comes to the interest of buyers. Discord generated $130 million in 2020 — nearly $45 million more than 2019 — but the COVID-19 pandemic, which won't be around forever now that a vaccine has been created, financially benefitted all companies in the gaming space, which includes Discord.

 

Of course, Discord is a fixture in gaming, streaming, and even general podcast communities in addition to many more, and anyone able to afford a price tag of $10 billion or higher would know from experience how to transform the market. 

 

According to GamesBeat, Discord has raised $480 million to date, in large part due to its Nitro subscription service. However, Discord's userbase extends far beyond paying customers, and while Discord CEO and co-founder Jason Citron has shyed away from advertising at every turn, it's very much in the realm of possibility that an eight-figure buyer might feel differently about its investment. 

 

Whether GamesBeat's report holds true or not, Discord's value is more than enough to warrant a sale, and developments should be expected in the near future. This story will continue to be updated as new information becomes available.

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