According to Bloomberg reports, Microsoft is in talks with Discord to acquire the gaming-focused chat software for more than $10 billion. Xbox chief Phil Spencer is said to be talking to Discord about the potential deal.
VentureBeat reported earlier that Discord was exploring a $10 billion-plus sale after multiple potential buyers expressed interest. Discord had signed an exclusive acquisition discussion with one party, suggesting a deal could be close. However, Bloomberg’s sources say the deal isn’t imminent, with one person saying Discord would be more likely to take itself public than seek an acquisition.
Bloomberg names Epic Games and Amazon as companies that have also held discussions with Discord in the past.
Discord has about 140 million monthly users and made $130 million in revenue last year, The Wall Street Journal recently reported, though the company isn’t yet profitable. Its final valuation was $7 billion after a funding round in December generated $100 million.
Discord’s software is free for most users. Still, the company makes money through $9.99 monthly Nitro subscriptions that offer more advanced features like higher resolution screen sharing, extra sticker packs, and more significant upload limits.