MS to Acquire World's Largest Gaming Messenger Discord for 11 Trillion Won

Bloomberg "Expecting Xbox Revenue Maximization"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Microsoft (MS) has entered negotiations with Discord to acquire the world's largest gaming voice messenger service, Discord, for $10 billion (11.3 trillion KRW).

On the 22nd (local time), Bloomberg News, citing sources, reported that Microsoft is in talks with Discord to acquire the company for $10 billion. Neither Microsoft nor Discord has issued a separate statement regarding this matter.

Previously, Discord was known to be in sale negotiations with major IT companies including Microsoft. Bloomberg also reported that besides Microsoft, Epic Games, the maker of the game Fortnite, and Amazon, the world's largest online shopping company, appear to have been involved in sale talks.

Since the COVID-19 pandemic began last year, as more people stayed home and enjoyed gaming, Discord's revenue and user numbers surged. Additionally, Discord's voice and video call features have been mainly used to host various online gatherings such as study groups, dance lessons, and book clubs. As a result, last year, Discord recorded 100 million monthly users, leading to evaluations that it has transformed from a game-focused voice messenger into a comprehensive platform for online meetings.

The background of this acquisition negotiation is analyzed to be due to aligned interests between Discord, which aims to expand from a game-focused business to a comprehensive messenger platform, and Microsoft, which seeks to strengthen its investment in the gaming industry. Matthew Kanterman, a Bloomberg analyst, said, "Microsoft's acquisition of Discord is to maximize synergy between the two," adding, "There will be increased opportunities for revenue generation, such as bundling Discord's paid subscriptions with Microsoft's Xbox game passes."

Previously, Microsoft declared an expansion of investment in the gaming industry to increase Xbox sales and grow the user base of its subscription-based gaming service, Game Pass. On the 9th, Microsoft acquired ZeniMax Media, a famous game studio that produced the RPG game series The Elder Scrolls, for $7.5 billion. Analyst Kanterman analyzed, "Microsoft's aggressive investment is expected to significantly enhance the value of the Game Pass service."

This content was produced with the assistance of AI translation services.