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Discord halts Microsoft talks: report

Discord halts Microsoft talks: report
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The popular messaging app Discord has reportedly stopped discussions to sell to potential buyers as it continues to consider an initial public offering (IPO).

Sources close to the matter told The Wall Street Journal that talks with tech giant Microsoft had ended without a deal being reached, though the possibility of rekindling them was left open.

In March, it was reported that Microsoft was in talks to purchase Discord. The messaging app has more than 100 million monthly users and was valued at $7 billion last year. The company is widely popular with video gamers and streamers, though it is working to broaden its user base.

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The Journal noted that Microsoft is also seeking to broaden its user base and had explored the possibility of purchasing TikTok last year when the Trump administration was threatening to block access to the video app over security concerns.

Sources told the Journal that Discord has been fielding offers from at least three other companies but that it would currently prefer to be independent.

The Journal noted that Discord made a move last month that would help facilitate an IPO when it hired its first finance chief, former Pinterest executive Tomasz Marcinkowski.

Microsoft had also given up on developing its own video game streaming service last year, the Journal noted, after finding it could not compete with preexisting services such as Twitch, YouTube and Facebook Gaming. Many users find that Discord offers better features, including higher-quality audio.