Elon Musk’s SpaceX is discussing an IPO for its satellite business, Starlink, aiming for late 2024.
Sources shared this with Bloomberg News, highlighting the plan to capitalize on growing space communications demand.
SpaceX is preparing to move satellite unit assets to a wholly-owned subsidiary. This step is crucial for the potential IPO.
Yet, the decision isn’t final, and SpaceX might keep the unit. The listing could shift to 2025, the sources added.
SpaceX’s formal representative did not immediately respond to comments. Musk, SpaceX’s CEO, has hinted at a Starlink IPO for some time.
He suggested it would happen once the company could reliably predict cash flow.
Last year, Musk indicated the market debut could take longer. However, Starlink’s recent success has changed the outlook.
SpaceX expects Starlink to generate around $10 billion in sales next year. This would exceed its rocket launch business, representing two-thirds of total revenue.
Founded in 2002, SpaceX’s Starlink has over 5,000 satellites. They provide high-speed internet in more than 60 countries. SpaceX has invested heavily in this satellite group.
Starlink competes with projects like Amazon’s Project Kuiper. Both aim to launch more satellites into low Earth orbit. They seek to connect remote or isolated areas.
Financial details of the private company have been limited. However, Musk recently announced on Twitter that Starlink reached a cash flow breakeven.
This marks a significant change from last year when the company was losing money. Musk’s main goal was to avoid bankruptcy.
Musk’s tweet expressed excitement about Starlink’s achievement. He praised the team’s work and noted Starlink’s dominant satellite presence.
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