Voice chat app Discord has pulled away from acquisition talks with potential buyers including Microsoft, preferring to remain independent – at least for now.
Microsoft had reportedly sought to acquire Discord for at least US$10 billion (~RM41.16 billion). But it wasn’t the only one. Discord talked to at least three companies about a possible acquisition, according to a Wall Street Journal (WSJ) report which broke the news on Discord’s decision.
Discord could possibly revive acquisition talks with Microsoft later, but the company is choosing independence for the time being. While still unprofitable, Discord nearly tripled its revenue from 2019 to 2020 – from nearly US$45 million (~RM185.3 million) to US$130 million (~RM535.3 million).
The acquisition aside, Discord is now turning its attention towards a potential IPO (initial public offering) in the near future. The WSJ noted the VoIP service had hired its first finance chief, Tomasz Marcinkowski, last month, boosting the prospects of an IPO.
As for Microsoft, Discord’s rejection represents a rare setback for its recent acquisition binge. The software giant only recently announced that it was acquiring Nuance, a speech recognition firm that formerly worked on Apple’s Siri. And last month, it completed its high-profile acquisition of gaming juggernaut, Zenimax Media, which houses critically acclaimed developers Bethesda Softworks and id Software.
Microsoft also attempted to buy TikTok’s US operations when the latter faced hostility from the Trump administration, but that effort ultimately fell through.