According to Bloomberg , Discord, the well-known social media platform, has secretly filed for an initial public offering (IPO) with U.S. regulators. Discord boasts over 200 million monthly active users, reached a valuation of $15 billion in 2021, and previously rejected an acquisition offer from Microsoft. However, as the company moves towards an IPO, it also faces regulatory pressure and challenges related to stricter child safety measures.
Discord secretly files for a US IPO, a key signal of a rebound in tech stock fundraising.
Discord, a well-known messaging app, has reportedly filed for an IPO confidentially, marking a significant signal of the tech unicorn's return to the capital markets. The company is currently working closely with Goldman Sachs and JPMorgan Chase, and although a specific listing timeline has not yet been finalized, its over 200 million monthly active users have made it a focus of market attention.
The U.S. tech IPO market is experiencing a significant recovery. Bloomberg data shows that tech IPOs raised a total of $15.6 billion last year, more than double the amount raised in 2024. Currently, Motive Technologies Inc., an AI-powered fleet management software company, and Klook Technology Ltd., a travel app developer, have filed for IPOs.
Discord was valued at approximately $15 billion in its 2021 funding round and rejected a $12 billion acquisition offer from Microsoft. However, the current market's valuation logic for high-growth tech stocks has shifted from simply focusing on revenue growth to emphasizing profitability and cash flow. Whether Discord can maintain its high valuation in the public market will depend on investors' confidence in its growth momentum in the post-pandemic era.
Discord's Business Model and Management Structure
Founded in 2015, Discord offers voice, video, and text chat capabilities. Its basic platform is free to use, while the paid Nitro subscription offers more advanced streaming and customization features. Although Discord was initially designed for gamers, users have also created servers on various themes, such as investing and community radio.
Discord's core revenue comes from its paid subscription service, Nitro, which offers advanced streaming and customization features, a significant departure from platforms like Meta and Reddit, which heavily rely on advertising revenue. On the management front, former Activision Blizzard executive Humam Sakhnini took over as CEO last April, succeeding co-founder Jason Citron. This personnel change suggests the company is shifting its focus to more mature corporate governance, attempting to expand beyond its core gaming community into diversified social applications such as investment and music, in order to build a more sustainable business model to meet the expectations of public market shareholders.
Discord is under pressure from state governments for its child safety measures. Approximately 15% of the company's employees are dedicated to safety initiatives, including using machine learning to identify and remove inappropriate content and employing community moderators to maintain its policies.
This article, "Discord Secretly Files for IPO: Will Its 10 Billion Dollar Valuation Spark an Investment Frenzy?", first appeared on ABMedia .
