Elon Musk, the CEO of SpaceX, has refuted a recent Bloomberg News report suggesting that SpaceX is considering an initial public offering (IPO) for its satellite internet venture, Starlink, as early as 2024. Musk labeled the report as "false" in a response on the social media platform X.
Starlink, a division of SpaceX, has made significant strides in the satellite internet industry and is currently the world's largest satellite operator. Despite the speculation, Musk has maintained that he would consider listing Starlink only when its revenue growth and cash flow are stable and predictable. Earlier this month, Musk indicated that Starlink had reached cash-flow breakeven, a notable milestone for the company.
SpaceX itself, with an estimated value of $150 billion, has been a trailblazer in space exploration and commercialization. It made history as the first private entity to send humans into orbit and has been at the forefront of developing reusable rockets, significantly reducing the costs associated with space launches. This innovation has placed competitive pressure on other companies in the space sector, including Jeff Bezos' Blue Origin.
The report of a potential Starlink IPO comes amid a contract that the unit recently secured to provide free internet in Mexico until the end of 2026. While the timing of an IPO remains uncertain, industry experts like Justus Parmar, founder and CEO of Fortuna Investments, speculate that Musk might target a later date, possibly around 2025 or 2026, once there's more predictability in Starlink's revenue.
Whenever the IPO occurs, it is expected to be a major event in the space industry, likely acting as a catalyst for broader interest and investment in space-related ventures. The anticipation around a Starlink IPO underscores the significant interest in the commercial space sector and the potential for further advancements and investments in this rapidly evolving field.