Saturday, May 21, 2022
HomeNewsMicrosoft to buy Discord for US$10b?

Microsoft to buy Discord for US$10b?


HomeNewsMicrosoft to buy Discord for US$10b?

Microsoft to buy Discord for US$10b?


Microsoft is set to make a US$10 billion (NZ$14.3b) bid to buying gaming chat app, Discord, according to reports from Bloomberg.

The move comes several months after Microsoft’s failed bid to buy TikTok for US$30 billion (NZ$42.98b) when former President Trump insisted a US company must be responsible for serving the app’s content to American users.

Microsoft is clearly in the market for a social media acquisition…

Is $10b good value?

No. Not right now. Discord currently has a healthy 140m active users. The service is currently ad free, with a US$9.99/month or US$99.99/year premium subscription tier that brought in US$130 million in revenue last year.

Those numbers don’t add up.

But it’s the potential of the Discord ecosystem is what Microsoft is buying/betting on though.

And there’s two things to note here:

1. First, social gaming isn’t going anywhere.

2. Discord successfully pivoted from gaming-only, to an all-inclusive model in March 2020 (beginning of global Covid lockdowns). It’s now more than just an in-game chat app – it’s a established place where communities hang out and chat online.

David Court
Editor - I want to hear what you think about Seriously. Good or bad, let me know your thoughts. Our goal, other than to write about NZ tech, is to get better every day. So get in touch. Even if you just want to say "hi".


Please enter your comment!
Please enter your name here

Read next

ErgoPoint review

ErgoPoint review

The ErgoPoint mouse is an ergonomic mouse designed to reduce pain or discomfort caused by working on a computer. It boasts a unique “vertical handshake”...


This VR mod makes it harder to breathe under pressure

Ever thought that wearing a VR mask doesn’t look unfashionable enough? Researchers from Salzburg University have decided that what could really complete the look...