Discord has just halted talks to sell itself to potential buyers, one of which included Microsoft. As per sources close to the matter, the VoIP based audio chat startup has resumed interest in a potential initial public offering.
We had previously reported on Microsoft being in talks with the startup for a potential acquisition worth over 10 billion US Dollars. Now, these talks have apparently ended without a deal, as per a WallStreetJournal report. Although, the sources also added that the deal could be rekindled again in the future. For those unaware, the American tech giant has been seeking acquisitions that would help it reach more customers recently. Just a year ago, the company was even considering purchasing the short video sharing app, TikTok, in the US, amid growing frictions between US and China.
The people familiar with the matter also added that Discord held interest from at least three companies regarding a deal. Although, the platform is performing well, so it seems that they prefer to stay independent as of right now. The startup operates from San Francisco and offers a free online VoIP audio chat and text based platform to users. This app was initially centered around gamers, but has since grown to accommodate various other users as well.
During the pandemic, the startup saw a massive growth on the platform as many users even used it to connect with their friends and family amid the lockdown. As per official notes, Discord stated that it has doubled its monthly user base last year, reaching 140 million daily users. In terms of revenue, the startup generated around 130 million US Dollars in revenue last year, which is a significant jump from 45 million US Dollars from back in 2019.
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