Report: Microsoft is thinking about splashing $10bn on Discord to slot it next to Skype, Mixer...
- Reference: 1616528699
- News link: https://www.theregister.co.uk/2021/03/23/microsoft_discord/
- Source link:
Discord, founded in 2015 and based in San Francisco, allows users to set up public and private chat servers, where people can talk to each other using using text, voice, and video, and exchange direct messages. Servers are encouraged to set up topic-focused channels.
[1]
The app quickly took off with e-sports teams and fans, and grew as gamers set up online communities on the platform. It now has more than about 140 million active monthly users including not just video game players and spectators but also programmers, technology enthusiasts, and people with non-tech interests.
Now, we're told, the communications startup is considering its options for the future. Multiple companies have expressed an interest in gobbling it up, [2]according to VentureBeat. One of those corps is Microsoft, Bloomberg [3]first reported , and Redmond is said to be willing to splash $10bn on the upstart. A potential deal, however, is still up in the air as some sources close to the matter believe Discord may want to go public instead.
[4]
“We don’t comment on rumors or speculation,” a spokesperson for Discord told The Register . A spokesperson from Redmond also declined to comment, too.
Microsoft takes a pruning axe to Skype's forest of features [5]READ MORE
Discord may seem a sensible acquisition target for Microsoft given how much it has been investing in its Xbox console family and subscription-based gaming service Xbox Live, which has since been rebranded to “Xbox Network.”
Being able to communicate with fellow gamers to coordinate and strategize is a bonus and elevates the social aspect of gaming. Earlier this month, Redmond’s $7.5bn takeover for games publisher Zenimax was approved. Microsoft is betting that owning top game titles will snare new subscribers; it’s possible that snapping up Discord could further boost attraction. Microsoft also owns GitHub and has perhaps figured out that developers like to chat on Discord.
But let’s not forget Microsoft’s previous attempts at incorporating similar chat services. In 2016, it acquired Mixer, a video game live streaming platform that was previously known as Beam. Mixer was folded into Xbox One, struggled to grow its user base as competitors like Twitch skyrocketed. Last year, Microsoft [6]shut down the service altogether.
Microsoft has also arguably neglected its video chat app Skype, too, which it [7]bought in 2011 for $8.5bn. The Windows giant hasn't completely given up on Skype, though for years it stopped talking about how many millions of people used Skype a month, suggesting growth had stalled or stopped.
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Skype was blown away by Zoom last year as the coronanvirus pandemic took hold. Skype's business offering is also being [9]replaced with Microsoft Teams. One wonders where Discord will fit in this strategy. ®
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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YFpzDczW3VQD5BJ5t13rcgAAAAI&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://venturebeat.com/2021/03/22/discord-exploring-sale-that-could-be-worth-more-than-10-billion/
[3] https://www.bloomberg.com/news/articles/2021-03-23/microsoft-said-to-be-in-talks-to-buy-discord-for-more-than-10b
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YFpzDczW3VQD5BJ5t13rcgAAAAI&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2018/09/04/microsoft_takes_a_pruning_axe_to_skypes_forest_of_features/
[6] https://www.theregister.com/2020/06/23/microsoft_cans_mixer/
[7] https://www.theregister.com/2011/05/10/microsoft_buys_skype/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YFpzDczW3VQD5BJ5t13rcgAAAAI&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://support.skype.com/en/faq/fa34551/what-s-the-difference-between-skype-microsoft-teams-and-skype-for-business
[10] https://whitepapers.theregister.com/
Because it's still better than Teams?
Re: Why. Won't. Skype. Die?
Once upon a time Skype was really good and really useful.
How they managed to turn this success into
Skype was blown away by Zoom last year as the coronanvirus pandemic took hold.
Must rank as an amazing achievement in negative business strategy.
Of course when I say that Skype used to be good, I'm not talking about Skype for Business which was pants and trying to change the name to hide from people knowing it's pants hasn't made any difference.
Perhaps they could just find a backup tape of the Skype SW from the mid noughties and relaunch that.
I hope they don't get it, as I'm sure they will soon "improve" it by removing functionality and adding non-stop ads.
If MS buy Discord they will change the UI with ever new release and loose users because of it. MS reputation for chat apps have not been good since they killed of MSN messenger and forced everyone over to Skype.
I am not actually Discord user but news of MS sniffing around it can't be good for its future.
Bye-bye Discord
It was great while it lasted.
I did wonder how they were going to pay for all that cloud capacity.
Can't wait
I can't wait to find out how quickly Borkzilla will emasculate Discord's usefullness and destroy its user base before going sulking back into its corner, having still understood nothing about the Internet works.
Oh well, the beancounters are just going to have to prepare to write off another ten billion. They're used to it.
Why. Won't. Skype. Die?