Space Exploration Technologies Corp. (SpaceX) is considering an initial public offering (IPO) for its Starlink unit, which aims to provide high-speed internet connectivity through a constellation of satellites. The company has been relocating the satellite unit’s assets to a subsidiary, with the intention of eventually spinning it off for an IPO.
No final decisions have been made, and there is a possibility that SpaceX may retain ownership of the unit. The IPO could also be delayed until 2025. SpaceX has not yet provided an official comment on the matter.
Elon Musk, the founder and CEO of SpaceX, has hinted at a Starlink IPO for several years, but the timing has remained uncertain. Musk stated that the space-based internet service would go public once it could predict its cash flow “reasonably well.” Last year, he informed employees that an IPO might not happen for years. However, the recent success of the business has accelerated plans, and Bloomberg News reported that Starlink is expected to generate approximately $10 billion in sales next year.
Founded in 2002, SpaceX currently operates a constellation of over 5,000 satellites, providing internet connectivity to customers in more than 60 countries. The company has invested billions of dollars to expand its satellite network. Starlink competes with other companies, such as Amazon.com Inc.’s Project Kuiper, to launch thousands of small satellites in low-Earth orbit.
Although financial details of Starlink have been limited, Musk stated on social media that the unit had reached cash flow breakeven. This marks a significant turnaround from last year when Musk stated that Starlink was still losing money.