Microsoft-Discord Sale Worth Billions Called Off

    • Discord has ended talks of a sale to Microsoft.
    • The free online chat platform is valued at roughly $7 billion.

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Discord has ended talks of a sale to Microsoft, and may pursue an IPO. 

The company  has a valuation of roughly $7 billion due to a user base that has reached 140 million, double last year’s total. The instant messaging platform would have garnered at least $10 billion in a sale to Microsoft.

Discord has experienced substantial growth over the past year due to its ability to offer a safe platform for people to connect amid the pandemic. Its accessibility has made it a popular tool for gamers. 

The free online platform, which allows users to communicate through text, audio, and video, generated $130 million in revenue in 2020, up from $45 million in 2019. 

Discord has yet to turn a profit, and Microsoft was hoping to change that as part of a bigger plan to expand its reach to more consumers. 

Last year, Microsoft considered acquiring TikTok from China-based tech company ByteDance. The negotiations eventually dissolved following the Trump administration’s desire to turn TikTok into a U.S.-based company. 

Now, another round of talks has fallen through for the multinational tech company. 

Not all hope is lost for a future Discord acquisition. The company has provided no timetable for a sale, but its ability to field interest from at least three companies shows ample market interest, should they pick talks back up.