Discord inks funding and partnership deal with Sony
Sony has invested an undisclosed amount in Discord, the messaging platform for gamers.
Sony Interactive Entertainment has not disclosed how much it has invested in Discord but stated that the minority investment was part of its Series H round. The deal comes just weeks after the messaging app’s acquisition talks with Microsoft reportedly came to an end.
Discord’s Series H round was first announced in December 2020 when it revealed that it raised $100m led by Greenoaks Capital. The company is valued at around $7bn and its other backers include Index Ventures and Greylock.
“From our very first conversation with (Discord) co-founders Jason Citron and Stan Vishnevskiy, I was inspired by their lifelong love for gaming and our teams’ shared passion to help bring friends and communities together in new ways,” Sony chief executive Jim Ryan said.
“Empowering players to create communities and enjoy shared gaming experiences is at the heart of what we do, so we are beyond excited to start this journey with one of the world’s most popular communication services.”
As part of the investment, Sony and Discord will partner up in a deal that will see the messaging app integrated into PlayStation Network in early 2022.
While details are scant, according to Ryan, the link up will allow for users on Discord and PlayStation Network to “communicate more easily while playing games together”.
Discord has 140m users and is particularly popular among gamers. It generates revenue from subscriptions and according to reports, it made around $130m in revenue last year.
Up until last month, the company was reportedly in talks with Microsoft about a possible acquisition for up to $10bn.
While Microsoft was likely eyeing up the deal to strengthen its position in gaming – Discord’s services are already integrated with Xbox – the talks led nowhere.
No longer talking with suitors, Discord is reportedly considering an initial public offering further down the line.
The post Discord inks funding and partnership deal with Sony appeared first on Silicon Republic.