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The CEO of Microsoft is hunting again for the creators’ center after the failure of TikTok application

Recent Microsoft targets have puzzled some analysts, investors who are well aware of the consumer business, and the company’s social media history. They wonder what the appeal of digital features like TikTok, Pinterest or now Discord, a chat app that is popular with gamers.

The answer is clear in the mind of CEO Satya Nadella. “Creates, creates, creates. “The next 10 years will be as much about creativity as it is about consumption and the surrounding community, so it is not created alone,” Nadella said in an interview last month. “If the last 10 years were about consumption, we make more purchases, we examine more, we look more, there is a creation of each of them. “But I see that this phenomenon is becoming much more democratized.”

For Nadella, the next decade of cloud computing, the rise of the Internet, will be determined not by viewers դիտ buyers, but by those who create և share their content in different, thriving groups. Although he did not mean the acquisition strategy, his previous purchases և current wish list show that Nadella wants to control some of the means of production. (The Wall Street Journal reported on Thursday that Microsoft’s interest has reached a stage of exceptional negotiation. According to various reports, Discord could reach $ 10 billion or more).

Looking at the next phase of Nadella’s philosophy’s cloud innovation in the context of philosophy, Microsoft’s negotiations with Discord և and its other other recent possible targets do not seem to be on track. Looking back on his first big deal when he took over software giant in 2014, Minecraft has a clear transition from the gaming community և servers և to a professional social network և LinkedIn corporate analytics centers to open source applications hosted և Collaborate on GitHub software exchange platform. In an interview, Nadella cited GitHub և LinkedIn as key examples of content creation communities he expects to present in greater numbers in the future of the cloud.

Launched in 2015, Discord attracts a free service to more than 100 million users per month, offering voice, video and text communications, as well as player-friendly features, including the ability to broadcast the game name they display to users. The app became popular a few years ago, rising alongside the hits of various players, such as Epic Games’ Fortnite,, has long been a draw for popular players և the influence of social media. Discord was valued at $ 7 billion last year, with people familiar with the negotiations saying that Microsoft was considering a deal worth more than $ 10 billion. Microsoft և Discord declined to comment.

At the same time, social media has become a virtual way to start a small business or become an entrepreneur from anywhere in the world. Social networks also realize the value of their greatest creators նրանց their important role in promoting the financial success of a parent company. From Snap to TikTok to Facebook Instagram companies are investing in advertising their stars, helping them make more money.

Having more creative communities for Microsoft allows you to sell more cloud applications և tools to the application: to its users. The controversy could spur Microsoft’s Xbox business, where software focuses more on players placing subscriptions like Game Pass, which they can use to access the title library via consoles, PCs and mobile devices. And as more and more young people grow up with operating systems, email, chat programs, and productivity software such as Apple and Google, having a popular community in that age group can introduce them to Microsoft as they once did. the big ones. Windows և Office.

Still, the rise of dissent will be a step beyond the communities of programmers and office workers where Microsoft has been playing for decades. The discrepancy may fit more precisely in the same way as buying Minecraft, using Microsoft’s 20 years in gaming consoles and even working longer in personal computer games.

There is evidence that Nadella wants to take that step. Last year, he was willing to spend tens of billions of dollars on ByteDance’s TikTok, a video-sharing viral app for American assets that is heavily used by teens, which is also far from Microsoft’s core software demographic. The company also applied for the purchase on the social media platform Pinterest. ByteDance chose to pursue a competitive bid for TikTok from an Oracle-led group, and any negotiations with Pinterest worth more than $ 44 billion did not result in a deal.

“Microsoft’s acquisition of Discord will be a really strategic step. “It shows that Microsoft understands the power of the community in the context of the epidemic,” said Christoph Jam Ammet, CEO of Gather Innovation Consulting. “Although there have always been differences between the stubborn black sheep in the team / productivity over large areas, it is ubiquitous as it is a community platform for countless subcultures of players.”

Nadella’s focus on bringing Microsoft to the forefront of emerging communities carries with it a double regulatory risk of antitrust-content moderation. As US և EU regulators take a closer look at the power and impact of high technology, none of the major companies could reasonably expect transactions, particularly acquisitions of large content platforms, to go unnoticed.

In any case, Microsoft has some experience, albeit less in terms of content moderation. Microsoft has had to keep abusive speech and harassment from platforms like Xbox Live և Mixer Gaming Streaming, which was canceled last year but has not actually been tested at the speed of a large real-time social platform որտեղ where certain Word և Types of programming can put Microsoft in hot water legally or with regulators. The few Mixer user numbers were part of why it was turned off.

Disagreements have already been asked to address content issues that are taken into account by larger services such as Facebook, Google’s YouTube, and Twitter. The dissent was forced to take steps to ban Nazi content after white supremacists used the service to plan a 2017 riot in Charlottesville, Virginia, where a counter-protest was killed. Earlier this year, it banned WallStreetBets, an investment group known for burning GameStop և AMC Entertainment Holdings shares over hate speech. Discord restored the group, claiming it would improve moderation practices.

If Microsoft succeeds in buying the service, Nadella’s community strategy will get a big boost. In order to implement it, Microsoft will have to take on the difficult role of building the communities it wants, stopping those communities.


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