SpaceX plans to split off Starlink and go public next year? Musk responds: The news is not true.

date
16/11/2023
avatar
GMT Eight
On Wednesday, Elon Musk denied reports that his rocket company SpaceX is discussing an initial public offering (IPO) for its satellite internet service, Starlink, as early as 2024. A previous report stated that SpaceX has been transferring assets of the division to a fully owned subsidiary that will eventually be spun off. Musk had previously stated that he planned to take Starlink public when its revenue becomes stable and predictable. Earlier this month, he announced that Starlink has achieved cash flow breakeven. SpaceX is valued at $150 billion and is the first privately held company to send humans into orbit. With the greatly reduced launch costs due to reusable rockets, SpaceX has taken the lead, and competitors like Jeff Bezos' Blue Origin are trying to catch up. Starlink is the largest satellite operator in the world. On Wednesday, the company secured a contract to provide free internet service in Mexico until the end of 2026. Justus Parmar, founder and CEO of venture capital firm Fortuna Investments, said, "I believe he (Musk) will spin off Starlink, not next year but in 2025 or 2026. He is waiting for a certain level of stability or predictability in revenue." Parmar believes that an IPO would have a "very catalytic effect on everything related to space."

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