Discord in Early Talks With Bankers for Potential IPO

Discord, a social chat platform widely favored by the gaming community, has recently engaged in discussions with investment bankers regarding a potential initial public offering (IPO) as early as this year, according to two individuals with knowledge of the matter.

An IPO from a well-known tech firm like Discord could provide a much-needed boost to private companies considering public listings. This year’s IPO market has seen a sluggish start, largely due to economic uncertainty and high valuations for privately held companies, which have contributed to market volatility.

Discord’s last private valuation, in 2021, stood at approximately $15 billion.

The sources, who requested anonymity due to the confidential nature of the discussions, emphasized that these talks remain exploratory, and there is no guarantee that the company will move forward with an IPO.

A Discord spokesperson addressed the speculation on Wednesday, stating: “We recognize the strong interest in Discord’s future, but we do not comment on rumors or speculation. Our priority remains providing the best experience for our users and building a sustainable, thriving business.”

Despite increasing financial market uncertainty, other companies are also preparing for public listings. CoreWeave, a cloud computing provider specializing in artificial intelligence, filed for an IPO this week. In its filing, CoreWeave disclosed revenue of approximately $1.9 billion last year, alongside a net loss of $863 million.

Founded by Jason Citron and Stanislav Vishnevskiy, Discord was born out of their initial endeavor to create a video game studio. While developing their first game, they encountered difficulties communicating online, which led to the idea for Discord. The platform was first launched for desktop and mobile users in May 2015.

The app quickly gained traction among gamers, offering free text, voice, and video communication. Its popularity surged even further during the early months of the pandemic. In 2021, Discord reportedly engaged in acquisition discussions with Microsoft for around $10 billion, though no agreement was reached.

Today, Discord boasts over 200 million monthly users, with 93% using the platform primarily for gaming.

The company operates on a “freemium” business model, allowing users to access its core services for free while offering premium subscriptions with perks such as custom emojis and enhanced voice and video quality. Unlike many social media platforms, Discord does not depend on traditional advertising for revenue.

In recent years, Discord has sought to broaden its reach beyond gaming, attracting influencers, musicians, and other public figures who use the platform to create dedicated communities for their followers.

Additionally, Discord has been expanding its business model. In 2023, the company launched an online marketplace where users can purchase profile enhancements and customized digital avatar features.