Sat. Dec 2nd, 2023
SpaceX Denies Plans for IPO for Starlink

SpaceX, Elon Musk’s space company, has denied plans for an initial public offering (IPO) for Starlink, its satellite internet connectivity system. Musk himself dismissed the possibility, calling the claims published by Bloomberg “false” in a post on the platform. Reuters reports that Bloomberg had previously indicated that SpaceX had established a separate entity for Starlink, making it a subsidiary company. This news was based on Musk’s past intention to list the satellite constellation. However, Musk stated that this will only happen when revenue growth and cash flow become stable and predictable.

At the beginning of November, Musk announced that Starlink had achieved positive cash flow. Currently, SpaceX is valued at approximately $150 billion. This valuation is attributed to several factors, including being the first private company to send humans into space and outperforming competitors like Jeff Bezos’ Blue Origin through innovation and groundbreaking discoveries. Meanwhile, SpaceX’s competitors have struggled to keep up with Musk’s company. Starlink is already the world’s largest satellite operator and recently closed a deal to provide free internet in Mexico until the end of 2026.

Justus Parmar, founder and CEO of venture capital firm Fortuna Investments, believes that Musk will eventually separate Starlink from SpaceX. Parmar suggests that this might happen in 2025 or 2026 when a level of stability or predictability in revenue is achieved. Parmar further speculates that an IPO for Starlink would have a significant impact on the space industry as a whole, serving as a strong catalyst for further developments.

In conclusion, SpaceX has denied any plans for an IPO for Starlink, stating that it will only consider going public when the company’s financials are stable.