What’s the Story on Discord and Why Microsoft Investors Should be Excited

Much like it’s done for several other popular industries — e-commerce, most prominently — the pandemic has accelerated the growth of the already booming video game industry.

Beyond video game makers themselves, like Activision Blizzard (ATVI) or Epic Games, the success of the industry has ushered in even more avenues for investors to capitalize on the movement. This has probably been seen most notably with a company like Nvidia (NVDA), which recently launched a new generation of gaming chips.

But, now it appears one of the tech industry’s blue bloods is looking to capitalize off the surging gaming craze, which should be grabbing the attention of millions of its investors.

According to Bloomberg, popular portfolio tech staple, Microsoft (MSFT), is reportedly circling a deal with the popular video game chat app, Discord for about $10 billion. Discord is a chatting app that’s especially popular with gamers right now, who like to stay connected to friends, while simultaneously playing online games, and according to various reports, the app currently has about 140 million active users per month.

For context, these active user numbers are essentially approaching Twitter’s (TWTR) 192 million monthly user base, which the company has built up since it launched in 2006. On the business side of things, Discord makes money by selling subscriptions to a premium service that lets you customize your profile and upload high-resolution images and videos for $9.99 per month or $99.99 per year.

According to TechCrunch, the company was last privately valued at $7 billion, which should make it all the more enticing to a company with cash to burn like Microsoft, who got burned themselves just last year on a bid to acquire the wildly popular social media app, TikTok.

Originally published by CNBC.com

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