Microsoft Acquiring Discord Communications Platform?

Microsoft is in talks to acquire Discord for more than $10 billion, though the communications platform could opt instead for an initial public offering (IPO), Bloomberg and Reuters report.

Discord is a voice, video, text and chat communications platform that had roughly 150 million active users as of December 2020. The company in late 2020 raised $100 million at a $7 billion valuation led by Greenoaks Capital with Index Ventures also participating, according to TechCrunch.

Discord's app is invite-only. The company's cloud servers are organized into topic-based channels. The platform is popular with school clubs, gaming groups, and the worldwide art community, Discord notes.

Microsoft Acquisition Targets, Cash Stockpile

Microsoft's M&A team apparently has been exploring consumer-focused applications that have social media components. Indeed, the cloud, enterprise and PC software giant approached Pinterest about a proposed $51 billion takeover but that deal didn't materialize, Financial Times reported in February 2021.

Microsoft has a big war chest for potential acquisitions. The company, backed by Azure and Office 365 momentum, in early 2020 had $134 billion in cash and debt of $87.1 billion -- for a net cash pile of $47 billion, according to Investors.com.

Microsoft Acquisitions Strengthen Azure Cloud Business

Recent Microsoft acquisitions include such tuck-in deals such as:

Neither Microsoft nor Discord have commented about the rumored M&A discussions.