People know that initial public offerings, or IPOs, are a great way for investors to make a lot of money in a short amount of time. On average, investors can make 40% of their money back in the first three months.
Once the initial funding is done, an IPO can be a great way for a company to sell its shares on the open market and raise more way to keep growing.
Whether or not you use this platform yourself, if you’re interested in new tech stocks you might have wondered, “Is Discord a publicly traded company? “Keep reading to learn everything you need to know about the upcoming IPO of Discord stock.
- The company hasn’t made any official announcements yet, but it’s expected to go public in the coming months.
- Since the pandemic, the number of people who use Discord regularly has grown as more people use online platforms to connect.
- Discord is worth $15 billion now, even though it turned down a $12 billion buyout offer in 2021.
Discord Public Listing Key Data and IPO Date
Discord IPO Date: 2022
IPO stock price: N/A
Valuation at IPO: $15 billion
Market cap: N/A
CEO: Jason Citron
Category: Social Media
Listing method: traditional IPO
Discord is likely to file its IPO on Nasdaq, which is what 99% of tech companies do. We don’t know anything specific about their IPO date, suggested stock price, or stock symbol because private companies don’t have to tell anyone about their upcoming IPO. Check this page again to find out all the important details as soon as they become available.
For a company their size, a traditional IPO is more likely than an IPO through a special purpose acquisition company (SPAC). This is a way to launch an IPO by merging with a blank-check company, which makes the IPO process cheaper and faster.
In 2020 and 2021, there were a lot of SPAC IPOs. Many of these, though, turned out to be failures. SPACs have a lot of problems, at least the way they were used for speculation in the last two years.
Jason Citron is the CEO and co-founder of Discord. He has a stake in the company and has made other investments. It is estimated that he is worth $800 million.
What About Investing Now on Discord?
Even though there are a lot of good reasons to think that Discord will go public in 2022, the IPO date for Discord is still not set. But as soon as the Discord IPO date is announced, it might be a good idea to be ready to jump on board, since a company like this is likely to give good early returns and is also likely to be a great long-term investment.
We have to remember that a recession could be coming, which could wipe out many overvalued stocks, but Discord is an online service. During the pandemic, it only got stronger, and since then, it has been going from strength to strength.
Discord has a strong niche and isn’t planning to go anywhere soon. As of 2021, the app has more than 150 million monthly active users and can be used on Windows, macOS, Android, iOS, and other major platforms.
The company’s partnerships with large gaming players like Microsoft and Sony, means the platform is very likely to retain its ground in the gaming market. But in 2020, Discord said that 70% of its users were using the platform for other things, like virtual classes, groups, and conventions.
In 2020, it was said that Discord made $130 million from paid subscriptions, server boosting, and fees from game sales.
Check out our IPO page to see when other IPOs are going to happen. If you want to find companies that match your interests, investment goals, and portfolio, you can use Gainy to find great IPO investment ideas, as well as established blue-chip companies and other assets.
Discord is no longer just for gamers
When COVID-19 was locked down in early 2020, a lot of people turned to the Discord app to stay in touch with family and friends. Discord changed their slogan from “Chat for gamers” to “Your place to talk.” This was a big marketing move that let in a lot more people. At the end of 2020, Discord said that 70% of its users didn’t use the platform for gaming.
By 2021, 350 million users would have signed up to use Discord. Discord is now the standard way for nerds of all kinds to talk about anything. It used to be the most popular app for gaming and cryptocurrency communities. Its loyal, cult-like user base continues to grow.
Discord has grown in a big way
The number of users who use Discord has grown steadily. Between 2017 and 2021, the number of people who use it every user will go from 9 million to 140 million. But that growth seems to have slowed down, with only 150 million monthly active users reported in 2022.
As a privately held company, Discord doesn’t talk about how much money it makes. Still, estimates show that it will make $130 million in 2020, which is an 188% increase from the $45 million it is expected to make in 2019.
The company has also grown by buying other businesses. In the past four years, it has bought three new businesses. Back in 2018, someone bought the Blitz app, which lets users make money by playing games. In 2021, Discord bought Ubiquity6, which was one of the first companies to use augmented reality, and Sentropy Technologies, which finds and stops harmful content.
Discord doesn’t have ads, which is probably one reason why it’s so popular. Instead, it makes money through its Nitro plans. The basic version of Discord, which has basic features, is free. Nitro and Nitro Classic, a cheaper option with fewer features, improve the Discord experience by giving you access to more tools and features. Many of these features are made for serious gamers, a niche market that is growing and is used by people all over the world. Nitro costs $9.99 per month or $99.99 per year, while Nitro Classic costs $4.99 per month or $49.99 per year.
Signs that Discord wants to go public
In September 2021, Discord raised $500 million in a funding round that put the company’s value at a whopping $15 billion. This made its valuation double from December, when it was worth $7.3 billion. 2020.
The company hasn’t said for sure if it wants to go public or if it will do so through an IPO or a direct listing. Investment bankers are said to have reported with Discord in March to talk about the possibility of a direct listing.
But they could also choose to do an initial public offering (IPO) if that fits their needs better. IPOs raise money by giving out new shares, but they come with fees for the underwriter and price swings when they first hit the market. In a direct listing, only existing shares are sold, but the process is much quicker and cheaper for the company.
Early in 2021, Microsoft reportedly tried to buy Discord for $12 billion, but the offer was turned down. Amazon, Twitter, and Epic Games are also said to have made offers in the past to buy out Discord.
Instead of taking offers, Discord hired Tomasz Marcinkowski, a former Pinterest executive, to be its first CFO. Since Marcinkowski led Pinterest’s successful IPO in 2019, this move was seen as a strategic step toward going public.
Last December, Discord hired Liz Hamren from Microsoft to be its COO. On the board of directors of the company are also the former Netflix executive Leslie Kilgore and the former Block CFO Amrita Ahuja. Some analysts think that Discord wants to go public because it is hiring top-level people from public companies.
Reasons why you should be careful
Fans and enthusiasts often can’t wait to get a piece of their favourite companies, which makes it easy to get excited about IPOs. But let’s not forget how Coinbase’s IPO went last year. Sometimes, a company’s initial price at offering is much higher than what the market considers a fair price. This is something that investors in video games should think about if they want to buy into a Discord IPO.
No one knows for sure what will happen, but a Discord IPO or direct listing could be something to plan for if the company can keep up its growth. Things could move very quickly after an announcement. Analysts think that a public offering of stock could happen as soon as the second half of 2022.
Frequently Asked Question
When does Discord go public?
Is Discord a public company?
No, but the IPO for Discord is set for this year. When a company does an IPO, it becomes a public company whose shares can be bought and sold on the stock exchange. When that happens, we’ll know what the IPO price for Discord is.
What will the share price of Discord be?
Shares of Discord haven’t been priced yet, but this information should be made public as the IPO date gets closer. Make sure to come back to this page to see if we’ve changed anything.
What is Discord’s valuation?
Forbes says that the company could be worth as much as $17bn. In terms of fundraising, it has been a busy year for Discord. In December 2020, it raised $100m, giving it a valuation of almost $7bn. Then, in September 2021, it raised another $600 million. This gave the company a steady flow of cash and a $15 billion value. It has been backed by Fidelity, Benchmark, Greylock Partners, and Franklin Templeton, which are all well-known private equity and venture capital firms.
How does Discord’s money work?
Since Discord is still a privately held company, there isn’t much financial information to report on. Forbes says that Discord made $130 million in revenue in 2020, up from $45 million in 2019. This is a threefold or 188% increase from the previous year. It uses a model called “freemium,” in which users can add to its free products by buying in-app features, games, and other items.
The company has done very well because of the Covid-19 pandemic. Discord posted a statement on its blog to highlight the many new ways customers have used the platform over the past year, whether it was for gaming, organising political movements, or hosting virtual wedding ceremonies.