Social media platform Discord is preparing for a potential initial public offering, according to Bloomberg, just weeks after Australian teenagers flocked to the platform following world-first social media bans introduced in Australia.

Since the bans came into force, Australian teens have increasingly turned to platforms such as Discord, private messaging apps like Signal and WhatsApp, and lesser-regulated apps including Yope and Lemon8. Some are also reportedly bypassing restrictions by using VPNs or parent-owned accounts.

In December 2025, the federal Labor government introduced legislation banning social media access for users under 16, requiring platforms such as TikTok, Instagram and YouTube to block underage users. The government said the move was aimed at protecting young people’s mental health and reducing exposure to cyberbullying and exploitation.

Discord — one of the last major privately held social platforms — appears to be among the beneficiaries of the policy shift. The company has more than 250 million monthly active users globally after a decade in operation, and its popularity among Australian teens has surged since the bans were introduced.

Originally built for gamers to coordinate gameplay, Discord has since become mainstream for Gen Z in Australia, functioning much like SMS once did. Users say it combines Slack-style text, voice and video functionality with the social cachet of Reddit.

Unlike Meta’s platforms, Discord is currently exempt from Australia’s under-16 social media ban, meaning it is not required to block younger users. Meta — which owns Facebook, Instagram and Threads — publicly warned the government that a blanket minimum-age policy would push teens toward alternative platforms such as Discord.

Discord says it does not allow children under 13 to access the app and disputes claims that it has failed to protect young users. The company says it provides parental tools that allow guardians to monitor activity and set usage limits for teens.

With teens locked out of other platforms, Discord has become a hub for conversations ranging from homework and sports to shared hobbies. Users interact via private messages or in large group chats known as servers, often organised around specific interests. Some school students have even created their own Discord communities, while usernames — known as “tags” — are increasingly used as digital identifiers, similar to phone numbers, Bloomberg reports.

Some users are persuading their parents to pay for Discord’s subscription service, which offers perks such as additional emojis, higher upload limits and HD video streaming. As the company explores an IPO, questions are growing about how it plans to further monetise its expanding user base.

Tech IPOs on US exchanges raised US$15.6 billion last year, more than double the amount raised in 2024, according to Bloomberg data.

However, Discord’s growth has also attracted scrutiny. The company has been named in multiple lawsuits alleging it has not done enough to protect children from online predators and other harms. In 2024, the US National Center for Missing and Exploited Children received 241,000 reports of suspected child exploitation referencing Discord.

Bloomberg also reports that extremists and mass shooters have used Discord to plan attacks or glorify domestic terrorism. A 2025 report by the Anti-Defamation League found the platform did not proactively remove harmful content, acting only after it was reported.

If the IPO proceeds, investors are likely to focus on whether Discord can significantly increase revenue in line with its growing audience. In 2024, the company laid off 17% of its workforce — around 170 employees — as it sought to cut costs.

Discord could still decide not to move ahead with a public listing. According to people familiar with the plans, the San Francisco-based company is currently working with JPMorgan Chase and Goldman Sachs on a potential IPO.