A month after reports that Microsoft sought to buy the hot voice chat app Discord surfaced, those talks are off, a source familiar with the deal confirmed to TechCrunch.
Discord is considering plans to stay independent, possibly charting a path to its own IPO in the not-too-distant future. The Wall Street Journal first reported news that the deal was off.
The two companies were deep in acquisition talks that valued Discord at around $10 billion before Discord walked away. According to the WSJ, three companies were exploring the possible acquisition, though only Microsoft was named.
Discord’s valuation doubled in less than six months last year and its stock is only looking hotter in 2021. A well-loved voice chat app originally built for gamers, Discord was in the right place well ahead of the current voice chat trend that Clubhouse ignited. As companies from Facebook to Twitter scramble to build voice-based community tools, Discord rolled out its own support for curated audio events last month.
Discord’s decision to veer away from a sale makes sense for a company keen to keep its unique DNA rather than being rolled into an existing product at a bigger company. The choice could also keep the company distant from a protracted antitrust headache, as lawmakers mull legislation that could block big tech deals to prevent further consolidation in the industry.
Source: Tech Crunch