Chat startup Discord Inc. has suspended negotiations to sell itself to potential acquirers including Microsoft the company
People familiar with the matter said that because the company has resumed interest in a potential initial public offering.
According to the “Wall Street Journal” report last month, Microsoft has been negotiating to acquire Discord for at least $10 billion. Some of them said that these negotiations ended without an agreement, although they may reignite in the future.
Microsoft’s market value reached nearly $2 trillion on Tuesday, and it has been looking for acquisitions that can help it attract more consumers. Last summer, when the Trump administration promoted a high-profile political stalemate, it sought to bid for parts of the video-sharing app TikTok.
People familiar with the matter said that Discord has attracted interest from at least three companies in the deal. They said that Discord has performed well and is now more willing to remain independent.
Discord in San Francisco operates a free online platform for chatting via text, audio and video. Since the outbreak of the pandemic, the pandemic has been particularly popular with gamers because people use it as a safe way to connect with friends and family.
Discord said that as the coronavirus pandemic shifts people’s daily lives online, the monthly user base doubled last year to approximately 140 million. According to the Wall Street Journal, the company generated $130 million in revenue in 2020, up from nearly $45 million in 2019, even though it is still unprofitable.
Discord was launched in 2015, and in a round of financing in December, its valuation doubled to $7 billion. According to data from Crunchbase, the company has raised a total of approximately $480 million. Investors include Greenoaks Capital, Greylock Partners and Index Ventures.
To facilitate the initial public offering, Discord hired its first financial director Tomasz Marcinkowski (formerly Pinterest) last month the company
administration staff. Although Discord is not a video game company, many of its users rely on it to communicate with each other when playing games, and several companies connected to the video game industry have gone public in the past year, including developers Roblox Corp. and Playtika Holding. the company
, Gaming hardware manufacturer Corsair Gaming the company
And game creation tool provider Unity Software the company
Roblox conducted a direct listing last month and shelved its original plan following the traditional IPO route because the video game company believes that it is too difficult to determine the right stock price.
The deal with Discord could have helped Microsoft expand its social media influence beyond LinkedIn Corp. and its products developed through the Xbox video game business. Discordant users said that the platform offers more attractive features, such as higher-quality audio, than rival chat services (even Microsoft’s own Xbox and Skype chat services).
In addition to the failure of the TikTok dialogue last year, Microsoft also abandoned Mixer, the company’s video game live broadcast service has been competing with companies such as Amazon.com. company’s
Twitches, letters company’s
YouTube and Facebook games.
In recent years, the technology giant has made several acquisitions, the most recent being the proposed acquisition of Nuance Communications. the company
It bought video game company ZeniMax Media Inc. for US$7.5 billion earlier this year, acquired software development platform GitHub Inc. for US$7.5 billion in 2018, and acquired LinkedIn for US$26.6 billion in 2016.
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