Discord: Why an IPO Could Be Imminent

May, 2022

Vine Strategy

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Discord: Why an IPO Could Be Imminent

Discord,a community chat platform may be showing signs of going public soon, which could present investors with a major opportunity.

After turning down a $12 billion buyout offer in 2021, Discord has a current valuation of $15 billion. The popular messaging app could be one of the most anticipated offerings of 2022.

The audio visual communication platform was launched in 2015 by avid gaming enthusiasts Jason Citron and Stan Vishnevskiy. Frustrated with slow and complex chat apps of the day, the pair built Discord to provide a simpler and streamlined way to communicate while gaming.

Discord quickly gained a following among different interest groups, positioning it as a market-leading app for communication. The COVID-19 lockdown in early 2020 helped boost Discord's user base, and the general public has continued to use it to stay in touch with family and friends. By 2021, Discord's registered users reached 350 million.  Discord is a well-established name in the market and its universal app has already gained popularity. A Discord IPO could draw a lot of attention.

The IPO possibility

In September 2021, Discord raised $500 million in a funding round that valued the company at a whopping $15 billion. This doubled its previous valuation of $7 billion in December. 2020. 

In early 2021, Microsoft is said to have offered $12 billion to buy out Discord, but the offer was turned down. Amazon, Twitter and Epic Games have also reportedly offered to buy out Discord in the past.

Discord’s management will need to consider its growth rate and current market sentiment before deciding if it should go public. If they decide to proceed, it could be the biggest IPO of the year.

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