Discord has filed confidentially for an initial public offering, according to people familiar with the matter, as venture capital-backed tech companies build a growing pipeline of potential listings.
According to the chatter, the San Francisco-based chat app is working with Goldman Sachs and JPMorgan on a sharemarket float, noting planning is ongoing and Discord could still decide not to proceed. The sources asked not to be identified because the discussions are not public.
Discord’s platform, which is popular with gamers and programmers, has more than 200 million monthly users.
US tech float market gains momentum
The potential IPO would come as the US market for floats shows renewed momentum. Tech IPOs on US exchanges raised $US15.6 billion ($23.2 billion) last year, more than double the prior year, data compiled by Bloomberg show.
Companies reported to be on file with the US Securities and Exchange Commission for possible listings include AI-enabled fleet management software firm Motive Technologies and Asia-based travel app maker Klook Technology.
In Australia, Discord has also drawn attention after being excluded from the country’s teen social media ban, and it is widely used by teenage gamers.
Valuation expectations under scrutiny
Founded in 2015, Discord provides voice, video and text chat, operating a freemium model. Its core service is free, while its paid Nitro subscription offers enhanced streaming features and additional customisation. While originally built with gamers in mind, the platform now hosts servers for a broad range of interests, from beatboxing and investing to community radio.
Discord was valued at about $US15 billion in a 2021 funding round led by Dragoneer Investment Group, a Discord spokesperson said at the time. According to Bloomberg, the company also rejected a $US12 billion takeover proposal from Microsoft that year.
PitchBook analyst Eric Bellomo said the last disclosed valuation appeared “lofty” relative to listed peers such as Reddit and Snap, and suggested it may be difficult to match in public markets. He added that secondary market trades have implied a valuation of around $US7 billion to $US8 billion, though noted private-market liquidity can distort pricing and may not reflect where an IPO ultimately lands. Bellomo said a $US5 billion to $US6 billion valuation range was a rough estimate and that public investors would likely apply greater scrutiny.
Leadership has also shifted in recent months. Humam Sakhnini, formerly vice chairman of Activision Blizzard, joined Discord in April as chief executive officer, replacing co-founder Jason Citron, who remains on the board.
The company has faced pressure from US state governments over child-safety safeguards. Discord says its safety initiatives include machine-learning tools to detect and remove offending content and resources to support community moderators in enforcing platform policies.
Representatives for Goldman Sachs and JPMorgan declined to comment. A Discord spokesperson said the company’s focus remains on delivering the best possible user experience and building a “strong, sustainable business”, and declined to comment further on any listing plans.