Discord ends sale talks with Microsoft - sources

Discord, which allows public and private groups to gather and chat by text, audio and video, has expanded from a gamers club to all types of communities, including sports fans, music groups and cryptocurrency investors. With over 140 million users, its business model stands out in the social network space where so many technology companies, such as Facebook Inc and Twitter Inc, rely on advertising for the bulk of the revenue.

Reuters | Updated: 21-04-2021 10:01 IST | Created: 21-04-2021 00:13 IST
Discord ends sale talks with Microsoft - sources

Messaging platform Discord Inc has ended deal talks with Microsoft Inc and plans to focus on expanding the business as a standalone company, sources familiar with the matter told Reuters on Tuesday. The company will focus on building the chat platform and making money from its user base that has grown quickly during the pandemic. A public listing is on the table but not imminent, the sources added.

Microsoft and Discord did not immediately respond to requests for comment. Reuters had reported in March that Microsoft was in talks to buy Discord for more than $10 billion.

Social networking has grown during the COVID-19 pandemic as people increasingly go online for activities from gaming to investment. Discord, which allows public and private groups to gather and chat by text, audio and video, has expanded from a gamers club to all types of communities, including sports fans, music groups and cryptocurrency investors.

With over 140 million users, its business model stands out in the social network space where so many technology companies, such as Facebook Inc and Twitter Inc, rely on advertising for the bulk of the revenue. The San Francisco-based company's revenue grew to $130 million last year through its Nitro premium subscriptions, at $9.99 monthly or $99.99 annually, for features such as special emojis and enhanced video resolution.

In December, Discord raised $100 million in a private funding round that valued it at $7 billion, counting Greenoaks Capital and Index Ventures as investors. Microsoft has been on an acquisition spree following its failed bid for TikTok last summer. This year, it has acquired gaming company Zenimax in a $7.5 billion acquisition and speech technology firm Nuance Communications Inc for about $16 billion.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Blockchain in Healthcare: Opportunities and challenges

The use of blockchain in healthcare is a relatively new innovation with many of its uses still being explored and related technologies being developed, improved, and scaled. ...

Debate surrounding vaccine passports and development misses bigger picture

... ...

Blockchain vs IOTA: Looking for a better alternative

... ...

For stability, Iraq needs to crack down on corruption

... ...

Videos

Latest News

EU eyes another go at more unified European business taxation

The European Commission wants to propose in 2023 a more unified way of taxing companies in the European Union, hoping that such rules, which have failed to win support in the past, will stand a better chance if they follow global OECD solut...

US STOCKS-Wall St ends lower, pulled down by tech stocks

Wall Street stocks ended lower on Monday, weighed down by tech shares as signs of growing inflation worried investors about the potential for tighter monetary policy. Of the 11 major SP sectors that declined, technology and consumer were am...

Chile's women shine in constitution vote as more men need leg-up to stay even

Chilean women made such a strong showing in elections to pick candidates to draft the countrys new constitution that adjustments to ensure the body was equally split between genders had to be made in favor of more men, elections body Servel...

Soccer-Bournemouth take narrow lead over Brentford in playoff semi-final

Arnaut Danjumas second-half goal earned Bournemouth a narrow 1-0 advantage over Brentford in the first leg of their Championship promotion playoff semi-final on Monday.With a limited but vociferous crowd inside the Vitality Stadium, the sou...

Give Feedback