Discord interviews banks for possible direct listing

[SAN FRANCISCO] Discord, a social communications platform that is particularly popular with gamers, is interviewing investment bankers about going public as soon as this year, according to people familiar with the matter.

Because Discord is well-capitalised and has the brand recognition needed to bypass traditional investment pitches, it's considering a direct listing, said the people, who asked not to be identified because the information was private.

The company hasn't made a final decision, though, and could still pick an initial public offering, the people said. The public debut could also slip to next year, they added.

A spokesperson for Discord declined to comment.

The San Francisco-based business, last valued by private investors at about US$15 billion, is especially popular with gamers and young people. Its success caught the attention of potential suitors, including Microsoft, which was rebuffed after offering US$12 billion for it last year.

Despite a troubled environment for technology stocks, people close to Discord believe that the company's traction will help it appeal to Wall Street, with 1 person noting that the company has seen significant growth in revenue.

Discord allows users to communicate via text, audio and video. It generates revenue via premium subscriptions for added functionality.

The company's backers include Index Ventures, Greylock Partners, Benchmark and Spark Capital. It has raised more than US$1 billion in financing to date, according to data provider PitchBook. BLOOMBERG