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Discord, the popular social chat platform, has begun preliminary discussions with investment bankers regarding a potential initial public offering (IPO) that could occur as early as this year. The gaming-focused communication service, valued at approximately $15 billion in its 2021 private funding round, is considering this strategic move amid cautious signs of revival in the tech IPO market.
Founded in 2015 by Jason Citron and Stanislav Vishnevskiy, Discord originated from the founders' frustration with existing communication tools while gaming. What began as a solution for gamers has evolved into a platform serving over 200 million monthly active users, with 93% using the app for gaming-related activities.
The company operates on a "freemium" business model, offering basic services at no cost while charging subscription fees for premium features like custom emojis and enhanced voice and video quality. Unlike many social platforms, Discord has deliberately avoided traditional advertising revenue streams.
"We understand there is a lot of interest around Discord's future plans, but we do not comment on rumors or speculation," a Discord spokesperson stated. "Our focus remains on delivering the best possible experience for our users and building a strong, sustainable business."
Discord's potential public offering comes during a period of renewed IPO activity. CoreWeave, an AI cloud computing provider, recently filed for an IPO expected to raise approximately $4 billion, potentially becoming this year's largest tech flotation with a valuation exceeding $35 billion.
In recent years, Discord has strategically expanded beyond its gaming roots. The platform has embraced influencers, musicians, and other content creators who have established Discord communities for their followers. In 2023, the company launched an online shop allowing users to purchase profile enhancements and custom digital avatar graphics.
The company previously attracted acquisition interest from major tech players, notably declining a reported $10-12 billion offer from Microsoft in 2021. This decision reflected Discord's confidence in its independent growth trajectory and long-term market potential.
Market observers note that Discord's IPO plans remain exploratory and subject to change based on economic conditions and investor sentiment. The company joins other valuable startups like Stripe, Chime, and Databricks that had delayed public listings but are now reconsidering as interest rates decline and the regulatory environment appears more tech-friendly.
