Sony Corp (SONY) has struck a deal with Discord, a popular chat app for online communities, particularly gaming-focused groups.
The multi-faceted arrangement will see Sony invest in Discord for a minority stake in the startup. The Japanese electronics powerhouse will integrate the Discord app into PlayStation consoles and mobile devices.
Many PlayStation users already use Discord to chat with friends. The partnership’s goal is to bring Discord and PlayStation experiences closer together, Sony Interactive Entertainment CEO Jim Ryan said in a press release.
The partnership announcement didn’t reveal exactly how the integration will work, but it will probably involve combining Discord’s chat capabilities with PlayStation’s social tools. The integration work has already begun, and Sony has promised that consoles incorporating the Discord app will begin rolling out in early 2022. It counts on bringing the app to PlayStation to enable people to chat more easily while enjoying fun moments together.
“From our very first conversation with 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,” said Ryan.
Discord lets people come together to chat, supporting text, audio, and video communication. The app’s community has expanded rapidly during the Covid-19 restrictions, and it now has more than 140 million monthly users. Sony hopes that the Discord integration will make PlayStations more appealing and competitive on the market, boosting its console sales.
Sony invested in Discord by participating in the startup’s Series H round. It has promised to share more details on the Discord integration into PlayStation in the coming months. (See Sony stock analysis on TipRanks)
Oppenheimer analyst Martin Yang reiterated a Buy rating and $135 price target on Sony stock. Yang’s price target implies 39.48% upside potential.
“We expect Sony’s video game and music business to drive strong shareholder returns in the long term,” said Yang
Consensus among analysts is a Moderate Buy, based on the stock’s 2 Buy and 1 Hold ratings. The average analyst price target of $120.40 implies 24.39% upside potential from current levels.
Sony scores 9 out of 10 on TipRanks’ Smart Score rating system. It implies the stock’s performance is likely to outperform market expectations.
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