Microsoft Shares Rise on Discord Buying News | R Blog RU

A serious deal is outlined, friends! Key participants: tech giant Microsoft, the company that owns the popular messenger Discord and – the most interesting – $ 10 billion. We need to know more details – right now that’s what we’ll do.

Discord will be bought out by Microsoft?

According to Bloomberg, on March 22, it became known that Microsoft is in talks with Discord to acquire the messenger. There is still no exact information about the stage at which the deal is being discussed and what are the prospects for its successful completion.

However, the publication reports that, according to sources, one of the world’s largest IT companies is ready to offer more than $ 10 billion. Whether Discord will be interested is another question.

Microsoft shares are showing growth

On March 22, at the close of the trading session on the NASDAQ, shares of Microsoft (NASDAQ: MSFT) gained almost 2.5%, from $ 230.35 to $ 235.99. This growth allowed to interrupt the drop in the corporation’s quotes, which lasted three days in a row.

On March 23, the positive trend continued: the value of securities increased by another 0.67%, to $ 237.58. During this month, shares of a representative of the IT sector have risen in price by only 2.2%, since the beginning of the year – by 6.8%.

Why is Microsoft seeking to acquire Discord?

According to the VentureBeat technology and innovation information platform, the messenger is one of the most popular among gamers. If the parties agree on a deal, then Microsoft will be able to expand its gaming business and improve its position in this segment.

To attract millions of users to their gaming products through Discord is the main goal, analysts say. It is important to note that the active audience of the messenger exceeds 100 million users.

Recall that this is not the first step of a technology corporation to restructure and optimize its gaming business. It previously acquired major video game publisher Bethesda Softworks, and improved the terms of its Game Pass subscription for Xbox.

Will Discord agree?

According to the Wall Street Journal, in the pandemic 2020, the company increased the number of users by 100% and accelerated its revenue to $ 130 million. And this, by the way, is almost three times more than the statistics for 2019. In the last investment round, Discord received $ 100 million and was valued at $ 7 billion.

Many analysts saw the return to Discord of Tomasz Marcinkowski, the first CFO, as a sign that the company would finally go public. Entering the stock exchange, albeit unprofitable, but a very promising organization seems very logical.

However, as the already mentioned VentureBeat reports, the firm does not mind becoming part of a larger and more stable structure. Moreover, Microsoft is not the only conglomerate to come up with a proposal. Unfortunately, the information resource does not name other corporations.

Summing up the result

News that Windows 10 version 1909 will no longer be supported has led to a downturn in Microsoft’s quotes. However, through the efforts of Bloomberg, VentureBeat and the Wall Street Journal, it became known that there is more interesting information from the IT giant’s office.

The tech corporation is in talks with Discord to acquire the messenger of the same name. The estimated cost of the deal exceeds $ 10 billion. Such rumors caused a slight, but still growth of shares – by 3.14%, to $ 237.58.

Experts note that the purchase of a popular messenger among gamers will have a positive effect on the development of the company’s gaming business. The main focus is on the exponential growth of Game Pass for Xbox subscribers.

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Microsoft is considering buying a chat app for gamers called Discord for $ 10 billion.