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Home Gaming NewsGeneral News Discord Reportedly Rejecting Microsoft’s $12 Billion Acquisition

Discord Reportedly Rejecting Microsoft’s $12 Billion Acquisition

by sam.h

Discord Inc. has halted talks to be acquitted to potential suitors, one of which includes Microsoft in what was a $10 billion bid, raised to $12 billion after further discussion. According to insiders, Discord resumes interest in a potential initial public offering down the line.

Meanwhile, Twitter Inc. also expressed interest in buying Discord, people with knowledge of the matter said. Other companies discussed a takeover or investment in Discord in recent weeks, with some talks valuing the chat company as high as $15 billion to $18 billion, two people said.

Likelihood of Discord’s IPO

An initial public offering (IPO) or stock market launch is a public offering in which shares of a company are sold to institutional investors and usually also retail investors. An IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges. 

This has some of the user base of discord concerned since if Discord is going with this route, that means they will potentially use the data they have collected from users all this while. After all, discord has a fleet of shareholders and will need to generate revenue one way or another to please the shareholders. If discord are not going to be acquitted by buyers such as Microsoft or others, then they will have to stick to other approaches.

Discord’s growth over the years

San Francisco-based Discord operates a free online platform for chatting by text, audio and video. Especially beloved by gamers, its popularity has surged since the pandemic took hold as people turned to it as a safe way to connect with friends and family.

Discord said it doubled its monthly user base last year to about 140 million as daily life moved online in the coronavirus pandemic. The company generated $130 million in revenue in 2020, up from nearly $45 million in 2019.

There will be further speculations as to what Discord will do in the end, as Facebook is also one of the likely suitors.


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