Xbox maker Microsoft Corp in Talks to Buy Gamer Communications App Discord

Software colossus and Xbox maker Microsoft Corp. may be in talks with gamer communications app Discord to purchase it in a deal observers say could be worth $10 billion. Both companies already hold a large amount of sway with video gamers. A joining of the two implies a pursuit by Microsoft (MSFT) of audiences far beyond Discord’s current user base. Let’s take a few moments to look at why a Microsoft-Discord union could be imminent.

Grow or Die

In the gaming and tech worlds, if you’re not growing, you’re dying. Founded in April of 1975, Microsoft is practically a venerable older adult in the tech markets. The software company understands the need to grow better than most companies. Discord, a gaming-focused Voice over Internet Protocol (VoIP) app, is much younger. The communications app first started up in San Francisco in 2012 and launched online in 2015. It, too, is focused on growth. Given the nature of the tech market it inhabits, Discord’s significant investors are probably also interested in selling to a deep-pocketed tech company at some point. If they weren’t, they likely wouldn’t have pumped hundreds of millions of dollars in to Discord in the first place.

Why a Deal?

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