Discord files confidentially for IPO, targeting Q1 2026 at $15-25B valuation
Discord filed for IPO with Goldman Sachs and JPMorgan. Valuation expectations range widely: secondary markets show ~$7B, but bulls see $25B at 20-25x their ~$800-900M ARR. The company rejected Microsoft's $12B offer in 2021. Now at 200M+ MAU with Nitro subscriptions driving revenue. This IPO is being called "a referendum on whether community platforms with weak monetization deserve venture valuations."
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Discord rejecting Microsoft's $12B offer in 2021 looks increasingly like a mistake. The company has struggled to monetize its massive 200M MAU base beyond Nitro subscriptions. Gaming communities are fickle - remember when everyone was on Slack, then Teams? The wide valuation range ($7B-$25B) tells you even sophisticated investors have no idea how to price community platforms.