[Asia Economy Reporter Yujin Cho] Online messenger Discord has halted its acquisition negotiations with Microsoft (MS) and others and is reconsidering an initial public offering (IPO), the Wall Street Journal (WSJ) reported on the 20th (local time).
Earlier, WSJ reported last month that MS was negotiating to acquire Discord, with the acquisition price possibly exceeding $10 billion.
Although the deal has currently ended, sources said there is still a possibility that Discord may resume acquisition discussions in the future.
WSJ reported that at least three companies, including MS, showed interest in acquiring Discord, and besides MS, game company Epic Games and e-commerce company Amazon also entered the bidding for Discord.
Regarding the failed negotiations, major foreign media including WSJ evaluated that Discord likely decided that proceeding with an IPO would be more advantageous than a sale, based on its strong business performance.
To proceed with the IPO, Discord hired Thomas Marchinkowski, formerly of Pinterest, as its Chief Financial Officer (CFO) last month.
Headquartered in San Francisco, Discord is a messenger that allows communication via video, voice, and text, launched in 2015 to support mobile gaming.
Known as a voice messenger for gaming, Discord gained popularity as a video meeting app during the COVID-19 pandemic, being used for online learning, dance classes, book clubs, and virtual gatherings.
Last year, monthly users doubled to 140 million, and revenue increased from $45 million in 2019 to $130 million, although it has yet to turn a profit.
Meanwhile, MS attempted negotiations last year to acquire the video-sharing platform TikTok but failed due to opposition from the former Donald Trump administration.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
