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Discord May Be Integrated Into PS5 In Future

M&A | ANNOUNCEMENT DATE: 03 MAY 2021
WRITTEN BY | 07 May 2021
Discord May Be Integrated Into PS5 In Future
M&A

💵 Corporate Agreement

  • Sony (TYO: 6758, NYSE: SONY) has announced a collaboration with Discord to introduce the video-game chat service to PlayStation next year. As a part of the agreement, Sony will invest an undisclosed amount in Discord 
  • The exact terms of the agreement remain uncertain, as it is unclear if a Discord app will be making part of PlayStation consoles or whether the partnership will take another form
  • Microsoft was previously in negotiations to acquire Discord, but the talks stalled last month after the company’s $12B offer was refused, as reported by Bloomberg
  • Sony has recently made an investment in Discord as part of the company’s H round that has amassed a total of $100m. 

💠 Strategic Rationale

  • In PlayStation 5 Sony made a significant accent on UX/UI improvements of the PSN system. Integration of one of the most advanced gaming communication platforms into PSN ecosystem might become another system selling feature of the console
  • Being cross-platform and commonly adopted as a gaming communication platform, Discord has a competitive advantage over PS5 native voice chat solutions and may connect PS users with PC players seamlessly

🎲  Product

  • The platform initially focused on gamers, but in the summer of 2020 Discord decided to shift towards the new audience, distancing itself from an image of a gamer-centric chat app — now over 30% of users use it for activities unrelated to gaming
  • Apart from classic chat app features, such as text, voice, and video communication, the app allows users to launch and stream their games and create their own communities and servers
  • The platform has more than 140m monthly active users, and, while not showing outstanding financial results due to being in a growth phase, has generated $130m revenue last year, up from $45m in 2019

💵 Discord Previous Deals

  • The organization has secured $100m of investments last year at a $7B valuation. The round was led by London-based VC firm Index Ventures
  • Before that, the company had raised a total of $279.3m in investments over 8 rounds
  • In 2018, Discord has purchased US-based esports company Blitz Esports for an undisclosed amount. Following the deal, Blitz’s League of Legends popular companion gaming app has moved to Discord

Source: TECHCRUNCH

Read more
24 March 2021
Microsoft May Acquire Discord For More Than $10B
💵 Corporate Agreement Sony (TYO: 6758, NYSE: SONY) has announced a collaboration with Discord to introduce the video-game chat ...
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M&A
Sony Group Corporation
  • Established in 1946
  • Headquarters – Tokyo, Japan
  • Founded by Akio Morita and Masaru Ibuka
  • Team of 111,000+ employees
  • International electronic products manufacturer, videogames publisher and record company
Discord
  • Established in 2012

  • Headquarters – San Francisco, US

  • Founded by Eros Resmini, Stanislav Vishnevskiy and Jason Citron

  • Global communication platform