SpaceX is reportedly considering spinning off its internet satellite business, Starlink, through an initial public offering (IPO) as early as next year, according to sources cited in a Bloomberg report. The space company, founded by Elon Musk in 2002, has been transferring Starlink assets to a subsidiary, though no final decision has been made regarding the IPO. It is worth noting that Musk tweeted the word "False" in response to the Bloomberg story, without providing further explanation.
Starlink, which provides high-speed internet service through its network of more than 5,000 satellites in over 60 countries, has been gaining momentum. Musk recently announced that the business achieved breakeven cash flow, and Bloomberg reported that SpaceX expects its revenue to increase by 67% next year, with Starlink accounting for $10 billion of the projected $15 billion in sales. This growth in revenue could potentially surpass the revenue generated by SpaceX's space-launch business.
Industry experts have been speculating about the possibility of a Starlink IPO for some time. Chamath Palihapitiya, a prominent investor, predicted in January that Musk would take Starlink public in 2023, citing the move as a way for Musk to create breathing room and increase his dry powder. Musk himself mentioned the idea during an all-hands meeting at SpaceX in 2022, although he suggested that an IPO was still several years away.
Meanwhile, billionaire investor Ron Baron recently forecasted that SpaceX could be valued at half a trillion dollars by 2030. Baron believes that the company's reusable rockets will play a significant role in creating a "railroad to space."
While SpaceX has not yet responded to requests for comment on the potential IPO, the reports indicate a possible future for Starlink as a publicly traded entity. However, until an official announcement is made, it remains uncertain when or if the IPO will take place.