Discord appears to be no longer interested in selling itself to another company, as Reuters reported that the San Francisco-based messaging platform has ended talks of the acquisition deal with Microsoft.
The chat service has reportedly been in discussions with other companies, such as Amazon and Epic Games, but it appears that it has ended all acquisition talks, at least for the time being.
It plans to focus on expanding the business as an independent company, building a chatting platform, and making money from its user base that has grown rapidly during the pandemic, and is also considering an IPO, but it's not imminent.
Reuters reported in March that Microsoft was in talks to buy Discord for more than $ 10 billion.
Social networks have grown during the coronavirus pandemic as people increasingly use the internet for activities from gaming to investing.
Discord, which allows public and private groups to gather and chat via text, audio and video, has expanded from a club of players to all kinds of communities, including sports fans , music groups and cryptocurrency investors.
With more than 140 million users, its business model stands out in the social networking space as many tech companies, such as Facebook and Twitter, rely on advertising for most of their revenue.
Discord revenue grew to $ 130 million last year, a significant increase from the roughly $ 45 million it generated during 2019, however, Discord is not yet profitable.
The platform generated the most revenue through its premium Nitro subscriptions, at a rate of $ 9.99 a month or $ 99.99 a year, for features such as: special emojis and enhanced video resolution.
Discord in December raised $ 100 million in a private funding round valued at nearly $ 7 billion.
Microsoft was in the takeover stage after its bid for TikTok failed last summer.
This year, the software giant acquired gaming company Zenimax in a $ 7.5 billion acquisition and speech technology company Nuance Communications for about $ 16 billion.