Bloomberg revealed on November 15 that SpaceX is considering the IPO for its subsidiary Starlink in a spinoff move that could transpire as early as next year. If happens, this deal could generate $10 billion in sales by 2024.
An IPO is the process by which a private company offers shares to the public for the first time. This allows investors to own a piece of the business. A spinoff occurs when a company creates a new independent entity by detaching a part of its existing operations.
SpaceX, the aerospace manufacturer and space transport services company, has been a private entity since its inception in 2002. It made headlines with breakthrough advancements in space technology, including reusable rockets.
Meanwhile, Starlink aims to provide high-speed internet across the globe by deploying a constellation of satellites in low Earth orbit.
SpaceX and Starlink futures with an IPO
The announcement underscores SpaceX’s ambition to capitalize on Starlink’s growth potential and to offer new investment opportunities in the market. Details about the potential financial structuring of the IPO are yet to be disclosed.
Interestingly, the billionaire investor Ron Baron said to CNBC on November 10 that he was expecting something like that to happen by 2027. However, the company’s plans could come faster than expected.
Essentially, the prospect of a Starlink IPO has garnered significant interest from the investment community as demand for reliable, high-speed internet continues to surge globally. In particular, in remote and underserved regions, the services Starlink aims to provide could be transformative.
Analysts are closely monitoring the situation for further updates. This planned IPO could mark a significant milestone for SpaceX as it maneuvers to fund its expansive space exploration goals through the monetization of its satellite internet service.
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