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Discord gives up on Microsoft

by on21 April 2021


Vole will do a deal with one of the four horses of the Apocalypse instead

Messaging platform Discord has ironically ended deal talks with Microsoft after failing to reach an agreement.

Discord said it 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.

In March Microsoft was said to be in talks to buy Discord for more than $10 billion.

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 and Twitter 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.

Vole 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 outfit Nuance for about $16 billion.

Last modified on 21 April 2021
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