Why Microsoft wants Discord

Microsoft is reportedly having discussions with Discord to buy the communications app. The Wall Street Journal reports that Microsoft is in “exclusive talks” to acquire Discord, and a deal could close next month. It’s the latest acquisition target for Microsoft, after the company failed to acquire TikTok and Pinterest recently. While all three are very different services, they share one common element: community.

Microsoft is willing to spend big on these services because, outside of Xbox, it doesn’t have a huge consumer-facing community like rivals Google, Amazon, Facebook, and Apple do. Microsoft has watched Google acquire YouTube and turn it into the world’s biggest video platform, Amazon buy Twitch and dominate streaming, Facebook acquire both Instagram and WhatsApp to control the way millions communicate and socialize online, and Apple rule mobile with its App Store.

Discord gives Microsoft access to a growing list of more than 140 million monthly active users that includes thousands of top YouTubers, creators, and gamers. Microsoft wants its own community.

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