Discord secretly submits IPO, can a billion-dollar valuation boost the investment frenzy?

According to Bloomberg, the well-known community messaging platform Discord has secretly submitted an application for an initial public offering (IPO) to U.S. regulators. Discord has over 200 million monthly active users, reached a valuation of $15 billion in 2021, and has previously rejected Microsoft’s acquisition offer. However, as the company advances toward going public, it also faces regulatory pressure and challenges to strengthen child safety measures.

Discord Secretly Files for U.S. Stock IPO, a Key Signal of Tech Stock Funding Rebound

It is reported that the popular communication software Discord has submitted an IPO application confidentially, marking an important signal of the tech unicorn’s return to the capital market. The company is currently working closely with Goldman Sachs and JPMorgan Chase. Although the specific timeline for listing has not been finalized, its over 200 million monthly active users have made it a market focus.

The U.S. tech stock IPO market is experiencing a significant recovery. Bloomberg data shows that last year, tech IPOs raised a total of $15.6 billion, more than doubling the amount in 2024. Companies such as AI fleet management software firm Motive Technologies Inc. and travel app developer Klook Technology Ltd. have also submitted IPO applications.

In 2021, Discord was valued at approximately $15 billion during a funding round and rejected a $12 billion acquisition offer from Microsoft. However, the current market valuation logic for high-growth tech stocks has shifted from solely emphasizing revenue growth to focusing on 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.

(Cryptocurrency drags down the 2025 U.S. IPO market performance, with poor returns compared to investing in the S&P 500)

Discord Business Model and Management Layout

Founded in 2015, Discord offers voice, video, and text chat functionalities. Its core platform is free to use, while the paid Nitro subscription product provides higher-level streaming media and customization features. Although Discord was initially designed for gamers, users have also created various themed servers, such as investment and community radio.

Discord’s primary revenue comes from its paid subscription service called Nitro, which offers advanced streaming and customization features. This contrasts sharply with Meta or Reddit, which rely heavily on advertising revenue. On the management side, Humam Sakhnini, a former executive at Activision Blizzard, took over as CEO last April, succeeding co-founder Jason Citron. This personnel change suggests the company is shifting its focus toward more mature corporate governance and trying to expand into diverse community application scenarios such as investment and music beyond its core gaming audience, aiming to build a more sustainable business model to meet shareholder expectations in the public market.

Discord has come under pressure from various state governments due to its measures to ensure child safety. About 15% of its employees are dedicated to safety measures, including using machine learning technology to identify and remove harmful content and deploying community moderators to enforce policies.

This article, “Discord Secretly Files for IPO, Can a Hundred-Billion Valuation Drive Investment Fever?” first appeared on Chain News ABMedia.