5 Things to Know About the Upcoming Discord IPO

September 19, 2021 9:22 PM EDT

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Popular chat app Discord is expected to have its IPO over the next several months. Discord has seen its popularity soar amid the pandemic with users more than doubling. Recently Discord has attracted takeover interest from some big name players, however, an IPO is still seen as the most likely option for the company.

Below are five things to know about the upcoming Discord IPO:

1. Discord IPO Timing: While the company is not in need of cash after its recent funding round, the company is still said to interested in taking advantage of its popularity and the red-hot IPO market. However, while a 2021 IPO can't be ruled out, it is seeming more likely to be a 2022 IPO.

2. Discord IPO Valuation: On September 16, 2021, Discord raised $500 million at a $15 billion valuation. The recent valuation was more than double a December valuation of $7 billion.

3. Discord Past Takeover Interest: Earlier in the year, Microsoft (NASDAQ: MSFT) was in talks about a potential takeover of Discord for $10-$12 billion. Microsoft was said to be interested in bolstering its gaming business with a deal for Discord. Others were also said to be interested in Discord. Talks have since ended.

4. Discord IPO Backers: Pre-IPO investors in Discord include Dragoneer Investment Group, Baillie Gifford, Coatue, Fidelity Management & Research, and Franklin Templeton.

5. Discord User Stats: The company has over 150 million monthly users. From 2019 to 2020, Discord tripled its revenue and doubled the users. Discord's 2020 revenue was reportedly $130 million.

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