The chat application popular with gamers and Gen Z is in advanced talks with Microsoft to be acquired for $10 Billion. Microsoft has been on the hunt to buy something that can help expand its reach and it help it connect better with young consumers. Microsoft previously made a failed bid for social media app Tik Tok. A deal with Discord may prove to be far more valuable as Microsoft already has a strong foot in gaming.
The acquisition may be the first real diversification step to put Microsoft in the game against Facebook with consumer entertainment facing social media. Discord’s audience is young and the way the app is used is multidimensional with voice chat, direct messaging, and other advanced used features rather than linear social media like many of Facebook’s current products. Should the acquisition move forward it would be Microsoft’s largest since it’s $26 billion acquisition of LinkedIn.
Source: Bloomberg
