Microsoft Corp. (NASDAQ:MSFT) is reportedly in talks to buy gaming and messaging platform Discord for more than $10 billion U.S.
According to multiple media reports, Discord has reached out to potential buyers and Microsoft is one of the frontrunners to buy the company.
San Francisco-based Discord is best known for its free service that lets gamers communicate by video, voice and text, and people stuck at home during the pandemic have increasingly used its technology for study groups, dance classes, book clubs and other virtual gatherings.
Discord has more than 100 million monthly active users and has been expanding its communication tools to turn it into a “place to talk” rather than a gamer-centric chat platform.
The COVID-19 pandemic has boosted the prospects of gaming companies as people stay at home and use video games for entertainment during lockdowns and stay-at-home measures.
Microsoft, which last year sought to buy social-media app TikTok and held talks to acquire Pinterest, has been shopping for assets that would provide it with access to communities of users.
Discord reportedly reached out to Microsoft to gauge interest in a deal. Discord raised $100 million U.S. at a $7-billion U.S. valuation last year, according to Pitchbook.