Discord Is Reportedly Exploring an IPO

Discord, the popular chat platform favored by gamers and beyond, is reportedly considering an initial public offering (IPO), according to sources cited by The New York Times. Recent meetings between Discord leadership and investment bankers suggest preparations are underway for a potential IPO as early as this year. Discord’s last valuation, in 2021, placed its worth at approximately $15 billion.

While a Discord spokesperson declined to comment on speculation regarding future plans, stating their focus remains on user experience and building a sustainable business, the news has sparked considerable discussion online. Discord’s widespread popularity, particularly within the gaming community, is attributed to its user-friendly features, robust moderation tools, and seamless integration with consoles like PlayStation 5 and Xbox Series X|S, offering convenient voice and streaming capabilities. The platform’s free-to-use model, complemented by optional paid features, has further contributed to its success.

However, the IPO news has generated concerns among users. Reddit threads on r/Discordapp and r/technology express apprehension that an IPO could negatively impact Discord's functionality and user experience, echoing a common sentiment about the potential downsides of prioritizing growth over user satisfaction. One highly upvoted comment on r/Discordapp succinctly captures this concern: "Whelp! It's been fun, but anytime someone decides they want to 'make a public offering' then the company everything goes to shit. What's the next communications platform promising to not sell out, like all the others?"

This IPO consideration isn't entirely unexpected. In 2021, reports surfaced of Discord engaging in acquisition talks with several companies, including Microsoft. However, the company ultimately opted to pursue an independent path, focusing instead on an IPO.