Microsoft Could Be Testing Its Immunity

 

Microsoft buying Discord makes a lot of sense. Perhaps too much.

The software giant is in talks to acquire the videogame-focused social network for about $10 billion, according to a report by Bloomberg late Monday. It would be the latest—and biggest—play Microsoft has made to expand its gaming business, following the $7.5 billion purchase of Bethesda Softworks parent ZeniMax last year and the $2.5 billion deal that scored the company the hit game “Minecraft” in 2014.

Discord also fits with what seems to be a concerted effort by the enterprise-software powerhouse to grab a high-profile name in the consumer internet space. Microsoft got close to acquiring TikTok last year. It also made a run at Pinterest in recent months worth about $51 billion, according to a report in February by the Financial Times.

Microsoft, in other words, has its wallet out and ambitions high. It has the means; net cash was $75.2 billion at the end of the year—the third-highest war chest in tech next to Google parent Alphabet and Apple . And privately held Discord would make for the best fit yet with the company’s existing businesses. The San Francisco-based company has amassed a base of more than 100 million monthly active users to effectively become the default social network for the videogame space. And its business has boomed in the pandemic, with revenue nearly tripling in 2020 to about $130 million, The Wall Street Journal reported earlier this month.

But such a move could also bring the kind of scrutiny Microsoft has so far managed to escape, as regulators have focused on its other four big tech peers. Microsoft doesn’t exactly dominate the videogame space; its Xbox consoles have actually undersold Sony ’s PlayStation over the past two console cycles. But Microsoft was already in a position to become the most prominent player in cloud-based gaming. Its Xbox Live service has also amassed a base of more than 100 million monthly active users, while 18 million are now paying for its subscription-based Game Pass service. Microsoft also has the second-largest enterprise cloud service next to Amazon.com . That cloud strength was enough to even convince rival Sony to partner with Microsoft in 2019 to develop game-streaming services.

 

Microsoft buying Discord makes a lot of sense. Perhaps too much.

The software giant is in talks to acquire the videogame-focused social network for about $10 billion, according to a report by Bloomberg late Monday. It would be the latest—and biggest—play Microsoft has made to expand its gaming business, following the $7.5 billion purchase of Bethesda Softworks parent ZeniMax last year and the $2.5 billion deal that scored the company the hit game “Minecraft” in 2014.

Discord also fits with what seems to be a concerted effort by the enterprise-software powerhouse to grab a high-profile name in the consumer internet space. Microsoft got close to acquiring TikTok last year. It also made a run at Pinterest in recent months worth about $51 billion, according to a report in February by the Financial Times.

Microsoft, in other words, has its wallet out and ambitions high. It has the means; net cash was $75.2 billion at the end of the year—the third-highest war chest in tech next to Google parent Alphabet and Apple . And privately held Discord would make for the best fit yet with the company’s existing businesses. The San Francisco-based company has amassed a base of more than 100 million monthly active users to effectively become the default social network for the videogame space. And its business has boomed in the pandemic, with revenue nearly tripling in 2020 to about $130 million, The Wall Street Journal reported earlier this month.

But such a move could also bring the kind of scrutiny Microsoft has so far managed to escape, as regulators have focused on its other four big tech peers. Microsoft doesn’t exactly dominate the videogame space; its Xbox consoles have actually undersold Sony ’s PlayStation over the past two console cycles. But Microsoft was already in a position to become the most prominent player in cloud-based gaming. Its Xbox Live service has also amassed a base of more than 100 million monthly active users, while 18 million are now paying for its subscription-based Game Pass service. Microsoft also has the second-largest enterprise cloud service next to Amazon.com . That cloud strength was enough to even convince rival Sony to partner with Microsoft in 2019 to develop game-streaming services.

 

Microsoft buying Discord makes a lot of sense. Perhaps too much.

The software giant is in talks to acquire the videogame-focused social network for about $10 billion, according to a report by Bloomberg late Monday. It would be the latest—and biggest—play Microsoft has made to expand its gaming business, following the $7.5 billion purchase of Bethesda Softworks parent ZeniMax last year and the $2.5 billion deal that scored the company the hit game “Minecraft” in 2014.

Discord also fits with what seems to be a concerted effort by the enterprise-software powerhouse to grab a high-profile name in the consumer internet space. Microsoft got close to acquiring TikTok last year. It also made a run at Pinterest in recent months worth about $51 billion, according to a report in February by the Financial Times.

Microsoft, in other words, has its wallet out and ambitions high. It has the means; net cash was $75.2 billion at the end of the year—the third-highest war chest in tech next to Google parent Alphabet and Apple . And privately held Discord would make for the best fit yet with the company’s existing businesses. The San Francisco-based company has amassed a base of more than 100 million monthly active users to effectively become the default social network for the videogame space. And its business has boomed in the pandemic, with revenue nearly tripling in 2020 to about $130 million, The Wall Street Journal reported earlier this month.

But such a move could also bring the kind of scrutiny Microsoft has so far managed to escape, as regulators have focused on its other four big tech peers. Microsoft doesn’t exactly dominate the videogame space; its Xbox consoles have actually undersold Sony ’s PlayStation over the past two console cycles. But Microsoft was already in a position to become the most prominent player in cloud-based gaming. Its Xbox Live service has also amassed a base of more than 100 million monthly active users, while 18 million are now paying for its subscription-based Game Pass service. Microsoft also has the second-largest enterprise cloud service next to Amazon.com . That cloud strength was enough to even convince rival Sony to partner with Microsoft in 2019 to develop game-streaming services.

 

Microsoft buying Discord makes a lot of sense. Perhaps too much.

The software giant is in talks to acquire the videogame-focused social network for about $10 billion, according to a report by Bloomberg late Monday. It would be the latest—and biggest—play Microsoft has made to expand its gaming business, following the $7.5 billion purchase of Bethesda Softworks parent ZeniMax last year and the $2.5 billion deal that scored the company the hit game “Minecraft” in 2014.

Discord also fits with what seems to be a concerted effort by the enterprise-software powerhouse to grab a high-profile name in the consumer internet space. Microsoft got close to acquiring TikTok last year. It also made a run at Pinterest in recent months worth about $51 billion, according to a report in February by the Financial Times.

Microsoft, in other words, has its wallet out and ambitions high. It has the means; net cash was $75.2 billion at the end of the year—the third-highest war chest in tech next to Google parent Alphabet and Apple . And privately held Discord would make for the best fit yet with the company’s existing businesses. The San Francisco-based company has amassed a base of more than 100 million monthly active users to effectively become the default social network for the videogame space. And its business has boomed in the pandemic, with revenue nearly tripling in 2020 to about $130 million, The Wall Street Journal reported earlier this month.

But such a move could also bring the kind of scrutiny Microsoft has so far managed to escape, as regulators have focused on its other four big tech peers. Microsoft doesn’t exactly dominate the videogame space; its Xbox consoles have actually undersold Sony ’s PlayStation over the past two console cycles. But Microsoft was already in a position to become the most prominent player in cloud-based gaming. Its Xbox Live service has also amassed a base of more than 100 million monthly active users, while 18 million are now paying for its subscription-based Game Pass service. Microsoft also has the second-largest enterprise cloud service next to Amazon.com . That cloud strength was enough to even convince rival Sony to partner with Microsoft in 2019 to develop game-streaming services.

 

Microsoft buying Discord makes a lot of sense. Perhaps too much.

The software giant is in talks to acquire the videogame-focused social network for about $10 billion, according to a report by Bloomberg late Monday. It would be the latest—and biggest—play Microsoft has made to expand its gaming business, following the $7.5 billion purchase of Bethesda Softworks parent ZeniMax last year and the $2.5 billion deal that scored the company the hit game “Minecraft” in 2014.

Discord also fits with what seems to be a concerted effort by the enterprise-software powerhouse to grab a high-profile name in the consumer internet space. Microsoft got close to acquiring TikTok last year. It also made a run at Pinterest in recent months worth about $51 billion, according to a report in February by the Financial Times.

Microsoft, in other words, has its wallet out and ambitions high. It has the means; net cash was $75.2 billion at the end of the year—the third-highest war chest in tech next to Google parent Alphabet and Apple . And privately held Discord would make for the best fit yet with the company’s existing businesses. The San Francisco-based company has amassed a base of more than 100 million monthly active users to effectively become the default social network for the videogame space. And its business has boomed in the pandemic, with revenue nearly tripling in 2020 to about $130 million, The Wall Street Journal reported earlier this month.

But such a move could also bring the kind of scrutiny Microsoft has so far managed to escape, as regulators have focused on its other four big tech peers. Microsoft doesn’t exactly dominate the videogame space; its Xbox consoles have actually undersold Sony ’s PlayStation over the past two console cycles. But Microsoft was already in a position to become the most prominent player in cloud-based gaming. Its Xbox Live service has also amassed a base of more than 100 million monthly active users, while 18 million are now paying for its subscription-based Game Pass service. Microsoft also has the second-largest enterprise cloud service next to Amazon.com . That cloud strength was enough to even convince rival Sony to partner with Microsoft in 2019 to develop game-streaming services.

 

Microsoft buying Discord makes a lot of sense. Perhaps too much.

The software giant is in talks to acquire the videogame-focused social network for about $10 billion, according to a report by Bloomberg late Monday. It would be the latest—and biggest—play Microsoft has made to expand its gaming business, following the $7.5 billion purchase of Bethesda Softworks parent ZeniMax last year and the $2.5 billion deal that scored the company the hit game “Minecraft” in 2014.

Discord also fits with what seems to be a concerted effort by the enterprise-software powerhouse to grab a high-profile name in the consumer internet space. Microsoft got clo