Discord, a popular gaming platform, has recently met with investment bankers to discuss preparations for an initial public offering (IPO) this year, according to the New York Times, citing two people familiar with the matter.
A well-known tech company going public could encourage smaller players to follow suit. However, the U.S. economy remains unstable, the market is volatile, and private companies are receiving high valuations—factors that have contributed to a slow IPO start this year. Discord was last valued by private investors in 2021 at $15 billion. The platform’s management is holding discussions primarily for informational purposes, and the IPO plans could still change, according to anonymous sources.
Discord’s Growth and Business Model
A Discord spokesperson responded to speculation, stating, “We understand that there is a lot of interest in Discord’s future plans, but we do not comment on rumors or speculation. We remain committed to providing our users with the best possible service and building a strong, sustainable business.”
The company was founded by Jason Citron and Stanislav Vishnevskiy, who originally aimed to develop a game studio. The idea for Discord emerged after the release of their first game when they encountered communication difficulties. In May 2015, the first version of Discord was launched for desktop and mobile, quickly gaining popularity in the gaming community for its free text, voice, and video communication. The platform experienced significant growth during the early days of the pandemic. In 2021, Discord was in acquisition talks with Microsoft for a reported $10 billion, but the deal did not materialize.
Monetization and Future Developments
Discord currently has 200 million monthly users, with 93% identifying as gamers, notes NIXSolutions. The company operates on a freemium model, offering basic features for free while charging for premium upgrades such as additional emojis, higher-quality audio and video, and profile customization. Unlike many social platforms, Discord does not rely on traditional advertising.
To expand its appeal, Discord has introduced new features, including official celebrity chats. In 2023, the company launched an online store, allowing users to enhance their profiles with paid customization options. As the platform explores an IPO, we’ll keep you updated on any new developments.