Elon Musk has dismissed claims that SpaceX, his space exploration company, is in talks for a potential initial public offering (IPO) for Starlink, its satellite internet arm, by 2024. He called these claims “false” in response to a report by Bloomberg News. Although SpaceX has been transferring assets to a subsidiary for a spin-off, Musk clarified that taking Starlink public would only happen once its revenue growth and cash flow stabilize.
Starlink, with an estimated value of $150 billion, is the largest satellite operator worldwide. It recently secured a contract to provide complementary internet services in Mexico until 2026. Furthermore, Musk had announced that Starlink would offer internet connectivity to recognized aid organizations in Gaza.
According to The Wall Street Journal, Starlink experienced a significant revenue increase in 2020, reaching $1.4 billion. However, this fell short of Elon Musk’s targets as outlined in internal documents. In 2015, the company had projected nearly $12 billion in revenue and $7 billion in operating profit by 2022. Additionally, Starlink has been slower in acquiring customers than initially expected, with just over a million active subscribers by the end of 2022.
SpaceX, known for pioneering private company space travel, has stimulated competition in the industry. Its innovations, such as reusable rockets, have pushed rivals like Jeff Bezos’ Blue Origin to adapt and reduce launch costs.
While an IPO for Starlink is not currently on the table, Musk’s commitment to taking the satellite internet arm public in the future remains, contingent on achieving stability and predictability in its financials.