Discord is reportedly in talks with bankers to explore a potential IPO
Discord, the popular social chat app favored by the gaming community, is reportedly in discussions with investment bankers regarding a potential initial public offering (IPO) that could occur as early as this year.
According to sources familiar with the discussions, Discord has held meetings with bankers to explore the possibility of going public. The move could inject much-needed momentum into the sluggish IPO market, which has been hampered by economic uncertainty and fluctuating valuations of private companies.
The IPO market has experienced a slow start this year due to market volatility, but an offering from a high-profile tech company like Discord could help reignite investor interest in public listings. The company was last valued at approximately $15 billion in 2021 and has since continued to expand its user base and business model.
However, the two sources caution that the IPO plans are in the exploratory phase and are subject to change. When questioned on the report, a company spokesperson declined to comment saying, “We understand there is a lot of interest around Discord’s future plans, but we do not comment on rumors or speculation. Our focus remains on delivering the best possible experience for our users and building a strong, sustainable business.”
The rise of Discord
Founded in 2015 by Jason Citron and Stanislav Vishnevskiy, Discord was initially developed as a solution for gamers struggling with communication during online play. Since its launch, the platform has grown significantly, attracting more than 200 million monthly active users, 93% of whom use the app for gaming.
However, Discord has also broadened its appeal to influencers, musicians, and other communities looking to engage with their audiences in dedicated chat rooms.
Unlike many social platforms that rely on advertising revenue, Discord employs a freemium model. While the core service remains free, the company generates revenue through paid subscriptions offering premium features such as custom emojis, enhanced voice and video quality, and other personalization tools. In 2023, the company also introduced an online shop where users can purchase profile enhancements and digital avatar upgrades.
The $10 billion offer
Discord’s journey toward an IPO comes after previous acquisition discussions with Microsoft in 2021, which reportedly valued the company at $10 billion. Unfortunately, the deal never materialized with the chat app opting to stay independent.
Now with an IPO that could easily be worth three times the Microsoft offer on the horizon, the two founders will look back with pride knowing they made the right decision rejecting the sale.
