Online virtual communications app Discord has raised $100 million more in funding and has achieved a $7 billion valuation. This puts Discord theoretically more valuable than some game companies.
Discord, an online app that lets friends connect in voice calls or chat rooms and includes integration with video game launchers like Steam, raised $100 million in investor funding after Discord doubled its user base from a year ago according to Techcrunch.
This shows investors are clearly considering Discord a valuable company with estimates of the company’s worth hitting $7 billion. Compare that to the valuation of certain game developers like Bethesda which Microsoft acquired for $7.5 billion.
Valuations, however, are approximate figures based on several financial factors and attempt to reflect the true cost of a company. This valuation is subject to fluctuation based on changes in the market or the company.
But valuations serve as a good barometer, and Discord’s value is now comparable to that of Bethesda, or even bigger than studios like 2K ($3.22 billion) or Capcom ($3.44 billion).
However, the upper levels of game developers can reach as high as $80 billion such as in the case of Nintendo. But companies like Ubisoft (~$11 billion), EA (~$22 billion), and Activision Blizzard (~$30 billion) are worth more than Discord. And even compared to other enterprise apps, Discord is dwarfed by companies like Slack which was acquired by Salesforce for $27.7 billion.
Since the COVID-19 pandemic, apps like Discord which connect friends and users virtually online have only become more important. Originally marketed as a tool for gamers, including launching its own games store, Discord has shifted considerably into a more all-purpose service for artists, communities, gamers, and more.
In 2019 Discord shut down its game store to focus on its core business.
Matt T.M. Kim is a reporter for IGN.