Discord Acquisition Talks with Microsoft Terminated

Confirmation has been received from a source with knowledge of the negotiations that discussions between Microsoft and Discord regarding a potential acquisition have been halted.

Discord is now evaluating options for remaining an independent entity, with an initial public offering (IPO) being considered as a future possibility.

Deal Valuation and Other Interested Parties

The acquisition discussions had progressed to a valuation of approximately $10 billion for Discord before the company decided to discontinue negotiations.

While Microsoft was the only company publicly identified as a potential acquirer, the Wall Street Journal reported that three companies were initially exploring the possibility of purchasing Discord.

Discord's Growth and Market Position

Discord experienced a doubling of its valuation within a six-month period last year, and its market appeal continues to strengthen in 2021.

Initially designed as a voice chat application for gamers, Discord anticipated the current surge in voice-based communication platforms, predating the popularity of Clubhouse.

In response to the growing demand for voice-based community features, Discord recently introduced support for organized audio events.

Reasons for Remaining Independent

Discord’s decision to pursue independence is likely driven by a desire to preserve its distinct identity and avoid integration into a larger company’s existing product line.

Maintaining independence may also shield Discord from potential antitrust scrutiny, as regulators are currently considering legislation to prevent further consolidation within the technology sector.

This could allow Discord to avoid lengthy legal battles and maintain control over its future direction.