Messaging platform Discord has ended deal talks with Microsoft and plans to focus on expanding the business as a standalone company, according to reports. Discord will focus on building the chat platform and making money from its user base that has grown quickly during the pandemic, according to reports. Last month, reports emerged noting that tech giant Microsoft could acquire discord for $10 billion.
Discord fielded interest from at least three companies about a deal but prefers to stay independent at this time as it is performing well, sourced told The Wall Street Journal. The company has resumed its interest in an initial public offering (IPO) and hired its first finance chief, Tomasz Marcinkowski, a former Pinterest last month. A public listing is on the table but not imminent, sources told Reuters.
Earlier this year, Microsoft acquired gaming company Zenimax in a $7.5-billion acquisition and speech technology firm Nuance Communications Inc. for about $16 billion. Discord is not exclusively a videogame company but many of its users rely on it to communicate with each other. Many companies consider Discord as an asset as it connects game companies with their fans in audio and text chat communities.
Discord has around 140 million monthly users and the platform has gained popularity in the pandemic. The company generated $130 million in revenue in 2020, up from nearly $45 million in 2019, but is yet to be profitable. The software is free for most users, but the company generates revenue through Nitro subscriptions that give more advanced features like higher resolution screen sharing, extra sticker packs, and larger upload limits.
Discord is a free app for mobile and PC that lets people chat via text, voice, or video in real-time. It got famous as a gamers-only platform but has now emerged famous as a social networking site for various communities like anime, TV series, music among others. users have to be invited directly or find out about private servers on Discord from other sources, like friends or social media to join them. The social media platform has internet calling features as well as discussion boards like Reddit.
Meanwhile, Discord hs launched its own audio-only chat feature Stage Channels to take on Clubhouse. Stage channels are aimed to make it easier for users to run audio-centric events like voice-based ask-me-anything (AMA)s, interviews, reading clubs, or virtual karaoke. . The Stage Channels are available for Community services, and to enable a community on Discord, users will have to go on Server Settings > Community.