Elon Musk refuted recent claims that SpaceX, his aerospace company, is in discussions regarding an initial public offering (IPO) for its Starlink satellite internet business by 2024.
Responding to a Bloomberg News report shared on social media, Musk dismissed the information as “false.” The report had suggested that SpaceX was moving Starlink’s assets to a wholly owned unit with eventual plans for a spin-off.
The tech billionaire, who is also the CEO of Tesla and owner of X, the platform formerly known as Twitter, said in 2021 that he would list Starlink once the revenue growth and cash flow of the satellite internet service became more stable and predictable.
Musk announced that Starlink achieved cash-flow breakeven earlier this month. Starlink is currently the world’s largest satellite operator with a constellation of over 5,000 mass-produced small satellites in low Earth orbit (LEO). On Wednesday, the company secured a contract to provide free internet services in Mexico until the conclusion of 2026.
Related: Musk Deliberately Inhibited Ukraine’s Access To Starlink To Appease Russia And China: Report
With an estimated value of $150 billion, SpaceX, under Musk’s leadership, became the first private company to successfully send humans into orbit, leaving competitors like Jeff Bezos’ Blue Origin racing to keep up with advancements in reusable rocket technology, significantly lowering launch costs.
A Starlink IPO would be a powerful catalyst for the space industry.
SpaceX investor and former ‘SPAC King’ Chamath Palihapitiya predicted in January that Musk would take Starlink public this year. Justus Parmar, founder and CEO of Fortuna Investments, gave a more conservative projection, anticipating Musk to consider the Starlink IPO around 2025 or 2026, waiting for a sufficient level of revenue stability before making a move.
Information for this story was found via Bloomberg, Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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