Breakingviews - Capital Calls: Microsoft-Discord deal

  • 3/23/2021
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DEAL CHATTER. Microsoft is in talks to acquire gaming chat service Discord as usage soared during the pandemic. In December, Breakingviews predicted that would be a good fit for the software giant since it complements Xbox and other offerings. Given frothy markets, Microsoft may have to pay up to woo Discord away from going public. Bloomberg reported on Tuesday that Microsoft may acquire the startup for more than $10 billion, about a 40% bump from its valuation in December from a fundraising round. Online video-game platform Roblox had a similar jump in value from when it raised money in January to its March direct listing, which valued it at around $42 billion. It stood at $38.5 billion on Monday. Discord’s growth, social network and subscription service make it attractive to investors. But Microsoft could offer more autonomy to the company’s co-founder Jason Citron than the scrutiny of a public company allows. Discord has a lot to talk about. (By Gina Chon)

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