Microsoft reportedly in exclusive talks to acquire Discord

Acquisition by Microsoft is estimated at $ 7 billion

  • Earlier this week, several published reports said video game chat platform was chatting with potential acquisition suitors, which included Microsoft (NASDAQ:MSFT) with a $10B offer.
  • Wall Street Journal sources now say Discord and Microsoft are in exclusive acquisition talks in a deal worth $10B or more.
  • If the negotiations don't stall, the deal could be finalized next month.
  • The start-up's valuation doubled in December to $7B during a private funding round. Discord's 2020 sales totaled $130M, up from roughly $45M the prior year.
  • Discord would bolster Microsoft 's Xbox business, which is thriving due to the pandemic-driven gaming surge, and fill a social gaming void created when the company shuttered its Twitch competitor Mixer last summer.
  • The acquisition would be Microsoft 's largest since the $26.6B LinkedIn purchase in 2016.

    Over the current book year the company from Redmond's total revenue could be around 164.19 billion USD (consensus estimates). This is rather significant more than 2020's revenue of 143.02 billion USD.

    Historical revenues and results Microsoft plus estimates 2020

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    The analysts expect for 2021 a net profit of 56.35 billion USD. The majority of the analysts expects for this year a profit per share of 7.4 USD. The price/earnings-ratio therefore equals 32.75.

    Per share the analysts are expecting a dividend of 2.2 USD per share. Thus the dividend yield equals 0.91 percent. The average dividend yield of the software & services companies equals a limited 0.55 percent.

    Newest target prices around 282 USD

    Jefferies & Co., UBS and Wedbush Morgan Securities recently provided recommendations for the stock.

    Based on the current number of outstanding shares Microsoft 's market capitalization 1852.28 billion USD. The Microsoft stock was the past 12 months quite volatile. Since last April the stock is even 58 percent higher. This year the stock price moved between 150 and 246 dollar.

    Historical stock prices Microsoft

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    On Thursday the stock closed at 242.35 USD. Nieuwsdienst: +31 084-0032-842

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