DISCORD IPO. Are you ready?

Discord’s Potential IPO: A New Chapter for the Gaming Community’s Communication Hub

Discord, the widely popular communication platform among gamers and various online communities, is reportedly preparing for an initial public offering (IPO) as early as this year. The company has enlisted financial giants Goldman Sachs and JPMorgan Chase to assist with the process, signaling a significant move toward entering the public market. ref.

Founded in 2015 by Jason Citron, Discord offers voice, video, and text communication services to approximately 200 million monthly active users worldwide. citeturn0news17 Initially catering to gamers, the platform has expanded its reach to include a diverse range of communities, solidifying its position as a central hub for online interaction.

In 2021, Discord was valued at about $15 billion following a fundraising round and reportedly declined a $12 billion acquisition offer from Microsoft, opting instead to remain independent. citeturn0news17 Since then, the company has focused on enhancing user experience and diversifying its revenue streams.

Traditionally, Discord has generated income through its Nitro subscription service, which offers users premium features for a monthly fee. However, in anticipation of going public, the company has begun exploring advertising opportunities to bolster its revenue. In October 2024, Discord introduced Video Quests, an advertising product that rewards users with in-game items or profile customizations for watching ads. Initially launched on desktop and console platforms, Video Quests are set to expand to mobile devices in June 2025.

While the prospect of an IPO presents opportunities for growth, it has also raised concerns among Discord’s user base. Many users fear that the platform’s focus may shift toward satisfying shareholders, potentially compromising the user experience that has been central to its success. Discussions on platforms like Reddit reflect apprehension about the “enshittification” of Discord, a term used to describe the perceived decline of user-centric platforms after going public.

As Discord navigates this pivotal transition, the challenge lies in balancing its expansion and monetization efforts with maintaining the trust and satisfaction of its dedicated community. The outcome of this endeavor will not only shape Discord’s future but also serve as a case study for other tech companies considering the leap into public markets.