Microsoft is in talks to buy the fast-growing Discord chat service for more than $ 10 billion to bolster its gaming business, a new report said.
The Windows maker is among several applicants for Discord – who are also considering going public. according to Bloomberg News.
Phil Spencer, the head of Microsoft’s Xbox division, was involved in the discussions, but neither side are close to a deal, the outlet reported late Monday.
The conversations reported are at a period of explosive growth for Discord, where users can chat via text, audio, and video.
The platform is reportedly popular with groups of gamers but has tried to attract a wider audience while calling itself a “place for everyone to talk”.
The platform has been used by students, activists, and even couples hosting virtual weddings, the company recently announced blog entry.
San Francisco-based Discord now has more than 140 million monthly active users, having roughly doubled its user base in 2020 due to the coronavirus pandemic. according to VentureBeat, who first reported that the startup was looking for a candidate.
Microsoft – which reportedly tried to buy both TikTok and Pinterest last year – could potentially bundle Discord’s paid “Nitro” service with its Xbox Game Pass subscription, analyst Matthew Kanterman told Bloomberg.
Neither Microsoft nor Discord immediately responded to requests for comments on Tuesday. Microsoft shares rose about 0.2 percent to $ 236.51 in premarket trading as of 8:49 a.m.