Gaming chat platform Discord is reportedly in the early stages of discussions with banks regarding a potential public listing, indicating a possible resurgence in the sluggish U.S. IPO market. According to sources familiar with the matter, the San Francisco-based company had explored going public as early as 2021 but postponed its plans due to market and potential uncertainties.
Founded in 2015 by Jason Citron, Discord has grown into a widely used platform with 200 million monthly active users worldwide. Initially popular among gamers and online trade communities, the program has recently expanded to appeal to a wider audience. Discord, unlike social media giants like Meta, X, and Reddit, has generally ignored ad-based income strategies in favor of paid subscription-based features through its Nitro service.
The renewed IPO discussions align with changing economic conditions, including lower interest rates and a more tech-friendly regulatory environment under U.S. President Donald Trump. The shift is expected to encourage several high-profile tech firms, including fintech companies Stripe and Chime, as well as the data platform Databricks, to reconsider their public listing plans.
Discord's most recent known valuation, from a 2021 financing round, was around $15 billion. Despite this, the company remains cautious about its future market moves. "We understand there is a lot of interest around Discord's future plans, but we do not comment on rumors or speculation," a company spokesperson said. "Our focus remains on delivering the best possible experience for our users and building a strong, sustainable business."
Discord's IPO considerations come amid a broader wave of upcoming offerings, including CoreWeave, an AI-focused cloud computing firm that recently filed for an IPO projected to raise $4 billion and value the company at more than $35 billion. If successful, CoreWeave's listing could become the largest tech IPO of the year.
Discord has previously received purchase interest. In 2021, Microsoft made a reported $12 billion bid for the company, which Discord ultimately rejected. With its community-driven model and unique monetization strategy, the company's potential public debut will be widely monitored as the tech IPO market heats up.