Microsoft in talks with Discord to buy for $10 Billion dollars

Bloomberg’s recent report suggests that Microsoft is set to make another major purchase in the gaming industry. The American tech giant is currently in talks with the Discord owners, who are looking to sell for over $10 billion.

Discord is a gaming themed chatting service, allowing users to use voice, text, and video communication. Many players of games, developers, and more use the app to communicate. Discord’s explosion began in 2015, when the service came to compete against Ventrillo, Skype, TeamSpeak, and more.

With the ability to join several servers, custom rules, roles, and emojis, the product quickly took over the way gamers speak to each other. Discord is now the number #1 platform for gamers.

Despite its size, Discord is not yet profitable. Discord has over 140 million active users a month, but the platform is entirely free-to-use, with very little monetization of its user base. Discord can not go public investment as it is currently making losses. 

Microsoft is apparently very interested in acquiring the platform, allowing them back into the communication market after Skype share in the space has shrunk. The deal is set for more than $10 billion USD, making it a deal that can change the gaming space. 

With Microsoft’s backing, Discord could become more connected with the Microsoft products, such as Xbox, Windows and more. Furthermore, there is potential for the Xbox Game Pass to offer Discord Nitro benefits. This is one-way the communication platform could become much more profitable.

As for the gaming market, this is not the first time Microsoft has made a major deal. Microsoft and Zenimax came to terms with Microsoft getting ownership of Bethesda titles. Furthermore, it is not the first time one of America’s biggest companies bought out a huge tech platform in the gaming space. Amazon bought Twitch.TV back in 2014, making them the biggest holder of the gaming streaming market.

Though this is not the only potential landscape-altering business deal in the gaming sphere. Tencent could potentially face anti-monopoly laws in China, causing ripple effects in the gaming world.