Discord Lands Minority Investment From Rival Sony, After It Rejected Microsoft Bid

Communication platform Discord rejected several large bids and is said to be pursuing an IPO. That didn’t stop gaming company Sony Corp (NYSE: SONY) from swooping in to invest in the company and launch a partnership.

What Happened: Technology company and Xbox owner Microsoft Corporation (NASDAQ: MSFT) is rumored to have offered $10 billion to acquire Discord. The company turned down Microsoft’s bid, as well as bids from others.

Discord is said to have 140 million users and saw rapid growth during the COVID-19 pandemic, going from $45 million in revenue in 2019 to $130 million in 2020.

Related Link: Why Is Microsoft Interested In Acquiring Discord

Sony Steps In: Sony announced in a blog post that it will partner with Discord to integrate a better social experience for Playstation users beginning next year, which could give Playstation a boost over Xbox. 

“We’re excited to announce a new partnership with Discord, the communication service popularized by gamers and used by more than 140 million people every month around the world,” Playstation President and CEO Jim Ryan said.

The partnership will create experiences for console and mobile starting next year “allowing friends, groups and communities to hang out, have fun and communicate more easily while playing games together.”

Sony made a minority investment in Discord’s Series H round as part of the partnership.

SONY Price Action: Shares of Sony were down 0.80% to $99.37 Monday at market close.

(Photo: The Focal Project via Flickr)