Discord has officially ended talks with Microsoft which could have potentially led to an acquisition. According to the Wall Street Journal, people familiar with the ongoing talks confirmed that Discord has now decided to pursue the potential to become a public company later down the line.
Microsoft originally began talks with Discord a few weeks ago as the company looked at purchasing the popular chat service for at least $10 billion. While the talks have been ongoing for a while, they ended without a deal in place. Reports claim that while Discord is investigating becoming a public company, they may pick up the opportunity with Microsoft somewhere in the future.
Discord is a popular video and chatting app that is used especially for gamers. The company reported substantial growth in 2020 with almost doubling its user base to about 140 million users. The deal between Discord and Microsoft could have seen the tech giant become the owner of a chat business that will continue to grow year on year. In addition, Microsoft could offer some attractive exclusive platforms to its Xbox and Microsoft audience.
Microsoft is not the only company hunting Discord. According to reports, there are two other large companies that have been in talks to purchase the chat service. However, the names of the other two companies have not been made public yet. In the end, Discord decided to stay independent while they pursue possible means to become a public entity. That way anyone will be able to purchase a stake in the brand and trade shares.