Sat. Dec 2nd, 2023
SpaceX Plans to Spin Off Starlink Business in a Public Offering

SpaceX, Elon Musk’s space company, is considering spinning off its satellite internet business, Starlink, through a public offering as soon as the end of next year. Bloomberg sources indicated that SpaceX has been transferring assets to a wholly-owned subsidiary, but no definitive decisions have been made and the Starlink IPO could be delayed until 2025.

SpaceX, founded in 2002, has launched over 5,000 satellites that provide high-speed internet service in over 60 countries. On November 2nd, Musk announced on Twitter that Starlink had reached profitability. Bloomberg also reported that the company expects its revenues to increase by 67% next year, reaching $15 billion, with $10 billion coming from Starlink. This would surpass the revenues from SpaceX’s rocket business.

Chamath Palihapitiya, known as the “king of SPACs” (special purpose acquisition company), previously predicted that Musk would take Starlink public in 2023. Palihapitiya mentioned this during a podcast, stating that it would provide liquidity to SpaceX. Musk had also discussed the possibility of a Starlink IPO with SpaceX employees in 2022, but at that time he mentioned that it would take several more years.

Furthermore, billionaire investor Ron Baron recently predicted that SpaceX would be worth half a trillion euros by 2030. Baron believes that SpaceX’s reusable rockets will help create a “railroad to space.”

The decision to spin off Starlink through a public offering would allow SpaceX to focus on its core rocket business, while also providing an opportunity for investors to participate in the growing satellite internet industry.