According to reports, Microsoft’s latest acquisition target has puzzled some analysts and investors. They want to know, what is the appeal of the video game chat community Discord? For Microsoft CEO Satya Nadella (Satya Nadella), the answer is already in mind.
Nadella said in an interview last month: “Creation, creation, creation (Creation), in addition to consumption and community, the next 10 years will be about creation. If the past 10 years are about consumption, We shop more, browse more, watch (video) more, then there is creation behind every consumption.”
For Nadella, the next decade of growth in cloud computing and Internet use will not be defined by people who watch and buy, but by those who generate and exchange their own content among different and thriving groups. People to define. Although he did not specifically mention the acquisition strategy, his past acquisitions and current wish list show that Nadella is eager to control some “production” methods.
Based on Della’s understanding of the next stage of cloud innovation, the negotiations between Microsoft and Discord and other potential goals in the near future seem reasonable. Looking back at a series of major transactions that he made after he took over Microsoft in 2014, from Minecraft, to LinkedIn, and to GitHub, they are all in the same line. In the interview, Nadella cited content creation communities such as GitHub and LinkedIn, hoping that they will play a more important role in future cloud services.
Founded in 2015, Discord is a free online real-time call software and digital distribution platform designed specifically for the community. It has become the “US version of YY” by domestic users. Discord has attracted a large number of celebrity gamers and social media influencers and currently has more than 100 million monthly active users.
Last year, Discord’s valuation soared to $7 billion. According to people familiar with the negotiations, Microsoft plans to acquire Discord for approximately $10 billion. In this regard, both Microsoft and Discord declined to comment.
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For Microsoft, having more creative communities is an opportunity to sell more cloud software and tools to social media platforms and their users. In addition, Discord may also boost Microsoft’s Xbox business.
As more and more young people grow up with the operating systems, e-mail, chat applications, and productivity software of companies such as Apple and Google, having a very popular community at this age may allow them to understand Microsoft. Just like their elders used to be familiar with Microsoft because of Windows and Office.
The acquisition of Discord will also allow Microsoft to surpass the programmer and office worker community that has been operating for decades. Like the acquisition of “Minecraft”, Discord can make full use of Microsoft’s years of accumulation in the field of video games and PC games.
Christophe Jammet, the managing director of Gathe, an innovation consulting company, said: “Microsoft’s acquisition of Discord is a real strategic move. It shows that Microsoft understands the power of the community in the context of the epidemic. But as a gamer Community platform, Discord is everywhere.”
Analysts said that Nadella focused on bringing new creator communities to Microsoft and faced dual regulatory risks, including antitrust and content censorship. As the US and EU regulators pay more attention to the power and influence of large technology companies, such a large transaction seems unlikely to be approved smoothly. On the positive side, Microsoft still has experience in dealing with censorship. If Microsoft successfully acquires Discord, Nadella’s community strategy will be greatly promoted.
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