Discord Raises $150 Million to Take on Steam and Epic Games
Discord, the popular chat service utilized mainly by video game communities, announced Friday that it closed a $150 million fundraising round that values the company at $2.05 billion.
The additional capital, which came from major investors including Greenoaks Capital, Tencent, and Index Ventures, will help build out Discord’s new Nitro service, an online store that now allows creators to earn 90% of the revenue generated from each sale.
Nitro is now available to Discord’s 200 million+ users for $99/year or $9.99/month to gain unlimited access to more than $1,000 worth of games in the store, in addition to a number of premium chat features.
This news comes as the online game distribution market begins to heat up. Most recently, Epic Games, creator of Fortnite, announced a new game store that boasts a generous 88% revenue share to take on Steam’s reign as the king of computer gaming.
As we previously speculated, Discord’s current trajectory could be setting it up as a prime acquisition target for Microsoft (MSFT). This idea might not be as brazen as many would think, as the two companies are already collaborating and Microsoft has been shifting away from its hardware-focused model to digital content and streaming.
Discord’s latest valuation is a jump up from the $1.65 billion it carried earlier this year when it raised $50 million.