It was reported in March that Microsoft is in talks to acquire the chat platform Discord. A Bloomberg source also stated that Discord is more likely to go public than to sell itself.

Discord's final status is still up in the air, but a new report from the Wall Street Journal indicates that "high-level talks" between the two companies have not worked out and that Discord may decide at some point in the future that an initial public offering (the first step in the conversion process from a private company to a publicly traded company first step) to reconsider, and is currently halting the process.

Talks between Discord and Microsoft could resume, and as we noted in March, a successful acquisition could be a major strategic windfall for Microsoft Discord is, at this point, effectively the default communication platform for the gaming community. platform, and last year began taking steps to move beyond that niche and become a more general-purpose chat app.

According to a recent TechCrunch report, Discord's valuation doubled from $3.5 billion in June 2020 to $7 billion in December of that year, but in March 2021 the company told the WSJ that despite significant revenue growth, it was not profitable. Nevertheless, there is no need to worry too much, as Microsoft's current valuation is just under $2 trillion, and some losses are tolerable. They may also want to win, especially since they lost out to Oracle in their bid to acquire TikTok in 2020.

Discord declined to comment on the report. We have asked Microsoft for comment and will update if we hear back.