Microsoft Corp (NASDAQ:MSFT) is reportedly in discussions to buy Discord, an online messaging and chat platform popular with video gamers, in a deal that could be worth over US$10bn.
According to a Bloomberg report, the computing giant responded to Discord's outreach to several potential buyers, although a merger is not certain as some sources said the firm could instead decide to go public.
READ: Microsoft made takeover approach to Pinterest, reports
The acquisition of Discord, which has around 300mln registered users and was valued at around US$7bn in December, comes as Microsoft pursues a strategy to beef up its gaming division and build upon the long success of its Xbox series of video game consoles.
In September last year, the company swooped to buy up ZeniMax Media, the owner of video game studio and Skyrim maker Bethesda Softworks, in a US$7.5bn deal that is expected to be completed in the second half of 2021.
Microsoft’s move also follows a boom for the video game industry during the coronavirus pandemic, as lockdown measures across the world saw consumers increasingly turn towards electronic entertainment to occupy themselves at home, resulting in sales booms for a number of developers and publishers including LSE-listed names such as Frontier Developments PLC (LON:FDEV) and Team17 Group PLC (LON:TM17).
The upswing has also proved a boon for firms involved in the video game creation process, with development services firm and AIM heavyweight Keywords Studios PLC (LON:KWS) upgrading its 2020 profit forecasts in January citing “robust demand” over the year.