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Reports about Discord Inc., a group chat platform provider, heading for a public listing has been around for a while now. It also made headlines in the first quarter this year as reports surfaced that it is exploring a merger with Microsoft Corporation (MSFT:US, NASDAQ:MSFT) and other digital media companies.
But while the chat app reportedly denied the merger speculations, there is yet to be official announcement about its shares debuting on exchanges.
Discord’s valuation was at roughly US$ 10 billion in March 2021. The company, currently operating independently, won a US$ 100 million contract from Sony in May, which has integrated Discord chat with its most valued product, the PlayStation.
The company has witnessed twice the surge in its fortune amid the pandemic-led lockdown. Some analysts anticipate that the company could grow multiple folds if it debuts on exchanges.
Discord Inc., which is said to looking into filing its initial public offering (IPO) down the line, came into existence in 2015. It has been challenging rival Twitter and Clubhouse voice communication with its voice chat servers.
Source: Pixabay.com
Let us explore more about Discord’s operations and revenue model.
Discord Inc.
After completing six years in the communication market, Discord is now offering free chat solutions that allow e-gaming players to communicate via text messages, audio and video calls.
Discord app comes embedded with Microsoft’s Xbox Series. Its application works on smartphones as well as desktops. After getting added to Sony’s PS5, the company has strategically expanded its reach among users across the online gaming arena.
However, the company reported in 2020 that around 70 per cent of its customers used its platform for non-gaming purposes.
Discord application users can use the app to live stream gaming sessions, professional meetings, and formally take interviews. It has been emerging as a rival to Microsoft’s Teams and Zoom Videos Communications Inc (ZM:US, NASDAQ:ZM).
The company does not have any feeds or subjective algorithms like Facebook Inc (FB:US, NASDAQ:FB) and Twitter Inc. (US:TWTR, NYSE:TWTR) on its platform. Hence, the company’s approach to cut the clutter could be a hit among millennials and GenZ social media users.
The company offers multiple servers for different purposes. However, the chatting platform is yet to make its presence among mainstream social media users. Thus, Discord’s IPO could be a disruptive event in the booming social media industry.
Please note: The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
