According to Silicon Republic, Discord has confidentially filed for an initial public offering, as reported by Bloomberg. The company, founded in 2015, boasts over 200 million users globally, with 90% of them playing video games. Back in 2021, Discord raised $500 million at a $5 billion valuation and famously rejected a takeover bid from Microsoft reportedly worth $10 billion. The platform has faced significant criticism for incidents of child sexual exploitation, leading it to join the UK’s Internet Watch Foundation in 2023 and ban teen dating and AI-generated child content. Last year, the company was working with Goldman Sachs and JPMorgan Chase on a listing that was expected by year’s end but didn’t materialize.
The Long Road to Wall Street
Here’s the thing: an IPO for Discord has felt inevitable for years. It’s the classic Silicon Valley saga. Build a massive, dedicated community, raise huge sums of money from top-tier VCs like Dragoneer and Coatue, and then eventually provide those investors with an exit. The twist was that $10 billion offer from Microsoft in 2021. Turning that down was a huge bet on themselves. They basically said, “We think we’re worth more than that on our own, long-term.” Now, with this confidential filing, we’re about to find out if that bet will pay off in the public markets.
Revenue Model and Market Timing
So, how does Discord even make money? It’s not through ads, which is a key part of its appeal to users. Revenue comes almost entirely from its Nitro subscription service, which offers perks like higher quality video, bigger file uploads, and custom emojis. It’s a premium layer on top of a free core product. The big question for investors will be: can they convert enough of those 200 million monthly active users into paying subscribers to justify what will likely be a hefty valuation? And the timing is interesting. Global IPO activity is picking up—EY says deals increased nearly 40% in 2025 versus the year before. The market might finally be receptive again to tech listings, especially for a brand with such strong cultural cachet.
The Elephant in the Room: Safety
But let’s not gloss over the serious challenges. Discord’s filing will undoubtedly force a harsh spotlight on its ongoing content moderation and safety issues. The platform’s openness and privacy features, which are strengths for communities, have also made it a haven for bad actors. The article mentions their efforts, like joining the IWF and forming the ROOST non-profit with Google and OpenAI. That’s all necessary work. Still, you have to wonder: how much will potential liability and the cost of building “better guardrails,” as they say, weigh on investor sentiment? It’s a fundamental business risk they can’t ignore.
Who Benefits and What’s Next?
If this IPO goes through, the clear beneficiaries are those late-stage investors from the 2021 round and the employees with equity. It’s their liquidity event. For users, the immediate change might be minimal, but the pressure to grow revenue quarter-over-quarter is a powerful force. Will Discord stay committed to its ad-free, community-centric model under the glare of Wall Street? Or will the need to please shareholders slowly morph the product? A confidential filing doesn’t guarantee a listing—they could still pull back if market conditions sour. But this move signals they’re serious. After nearly a decade, Discord is ready to test its value in the big leagues.
