Discord reportedly rejects Microsoft's $12 billion acquisition offer

Nachiket Mhatre
·2-min read

Discord reportedly rejects Microsoft
Discord reportedly rejects Microsoft

21 Apr 2021: Discord reportedly rejects Microsoft's $12 billion acquisition offer

Microsoft was rumored to be in talks with Discord for acquiring it in, what would have been, a $12 billion deal. However, latest reports indicate that deal may have fizzled out, according to unnamed sources privy to Bloomberg.

Bloomberg had earlier speculated the possibility of Discord leaving money on the table to pursue the IPO route.

No comments: Neither Discord, nor Microsoft responded to these rumors

Bloomberg had earlier suggested that Discord was negotiating with multiple parties including Epic Games and Amazon.

However, an additional VentureBeat report had also confirmed that Discord was in exclusive acquisition talks with an unnamed party that could quite likely have been Microsoft.

It must be noted that neither Discord nor Microsoft have made official statement or otherwise even tacitly acknowledged the unverified reports.

Quite unique: What exactly is Discord?

Discord was founded as a VoIP solution for competitive gaming for gamers dissatisfied by in-game communication. However, in its six-year existence, it has transformed to offer multiple gaming and community-centric solutions.

Discord is primarily a messaging and streaming platform that adds value by allowing technically proficient users to create extremely customizable discussion servers spanning various interests.

It has also dabbled in digital game distribution.

Unique proposition: Discord is at the crossroads of gaming and social media

While saying no to a $12 billion acquisition deal might sound like a bad idea, but Discord has long term plan of building the brand.

The company finds itself in a unique position of being at the crossroads of geek-centric social media as well as video game content distribution platform.

Discord's hobby and community-centric discussion servers have become an apt alternative to Reddit.

Autonomy: Discord's IPO gambit is sign that it believes in itself

Discord's IPO gambit is a sign that the company believes in its strategic direction and long-term viability.

Raising money through public equity offerings allows the management to retain control over the company's destiny, while still having access to the capital required to consolidate its vision.

Roblox is a good example of a video game entity taking the IPO route to maintain autonomy.