Chat startup Discord Inc. has halted talks to sell itself to potential suitors including Microsoft Corp. , according to people familiar with the matter, as it resumes interest in a potential initial public offering down the line.
Microsoft had been in advanced talks to acquire Discord for at least $10 billion, The Wall Street Journal reported last month. Those talks ended without a deal, though it is possible they could be rekindled in the future, some of the people said.
Microsoft, whose market value Tuesday stood at nearly $2 trillion, has been on the hunt for acquisitions that would help it reach more consumers. Last summer, it explored a bid to purchase parts of the video-sharing app TikTok amid a high-profile geopolitical standoff prompted by the Trump administration.
Discord fielded interest from at least three companies about a deal, some of the people said. They said Discord is performing well and prefers to stay independent at this time.
San Francisco-based Discord operates a free online platform for chatting by text, audio and video, and is especially beloved by gamers. Its popularity has surged since the pandemic took hold and people turned to it as a safe way to connect with friends and family.