Report: Discord rejects Microsoft’s takeover offer

Discord has ended takeover talks with Microsoft and rejected the offer, reports the Wall Street Journal. The messenger service wants to go public instead. The talks had started about a month ago. Microsoft reportedly offered more than $ 10 billion for Discord.

Microsoft wasn’t the only interested party. Laut Wall Street Journal at least three other companies were interested in takeover talks with Discord. Previously, Discord had according to information Bloombergs also spoke to Amazon and Epic Games. Even if the talks with Microsoft about the 10 billion offer have ended for the time being, a return to the negotiating table is not excluded.

Discord doubled its monthly user numbers to around 140 million last year, especially since life in pandemic times is increasingly happening online. Discord generated $ 130 million in revenue in 2020, almost three times as much as in 2019. However, the messenger service is still not profitable.

Last month Discord hired Tomasz Marcinkowski as its first finance director in what is seen as preparation for an IPO. Marcinkowski comes from Pinterest, where he can point to significant growth after five years as CFO. Pinterest went public in April 2019.

Discord was developed by Jason Citron and Stan Vishnevskiy and released to the public in 2015. In the beginning, it was a platform on which gamers in particular communicated – and not just during the game itself. Text, voice and video chats are available. Small communities are central to this, in which users can join forces depending on their interests. Also heise online operates such a discord community. The target group is no longer limited to gaming.

A Discords takeover would have fitted Microsoft’s ecosystem around the Xbox consoles. The US group has long been buying successful Internet offers that have large user communities. In 2016 Microsoft took over the business network LinkedIn for more than 26 billion US dollars, followed in 2018 by the software development platform GitHub for 7.5 billion US dollars.

Billions in takeover bids for the TikTok video app and the Pinterest online bulletin board have failed in recent months. Among other things, Microsoft is aiming to bring large online communities to its own Azure platform in order to be able to harvest usage data for other business areas.


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