Microsoft Wants To Purchase Discord And We Know Why

According to multiple independent reports, Microsoft is interested in acquiring Discord, an instant messaging and digital distribution platform that’s especially popular among Gen Z gamers.

While the two companies are still far away from striking a deal, Microsoft seems to be the only potential buyer at the moment, and the software giant is willing to pay up to $10 billion to add Discord to its portfolio.

But why is one of the largest companies in the world interested in spending so much money to buy what was once the alt-right’s favorite chat app? The answer may surprise you: Microsoft isn’t really interested in the platform itself; it’s interested in the community of around 150 million monthly active users.

“Creation, creation, creation — the next 10 years is going to be as much about creation as it is about consumption and about the community around it, so it’s not creating alone,” said Microsoft CEO Satya Nadella. “If the last 10 years has been about consumption — we’re shopping more, we’re browsing more, we’re binge-watching more — there is creation behind every one of those.”

Discord

Discord is a huge community of content creators, and many of its users play video games on Microsoft’s video game consoles. In the past, Microsoft had attempted to create a place for gamers to “come together to talk about games, watch games, watch others play games,” as Xbox chief Phil Spencer put it, by purchasing live streaming platform Beam and renaming it Mixer, but that effort turned out to be a failure.

The difference between mixer and Discord is that the latter platform is already loved by its target audience, so Microsoft wouldn’t face an uphill struggle and could simply focus on tightening the integration between Xbox, PC, and Discord.

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“There’s a big opportunity to bundle Discord’s premium offering, Nitro, into the Game Pass service to drive more subscriptions from the last reported 18 million,” pointed out Bloomberg Intelligence Analyst Matthew Kanterman.

It’s worth noting that Microsoft has been looking for its next big acquisition for quite some time now. The company attempted to purchase both TikTok and Pinterest but failed each time. It will be interesting to see if things will work out on the third try.