NEW YORK - SpaceX is reportedly considering an initial public offering (IPO) for its rapidly growing Starlink satellite business, with potential plans to go public as early as late 2024 or into 2025. According to unnamed sources, the company is preparing for this significant move by transitioning Starlink's assets into a wholly owned subsidiary, which could lead to a spin-off or the company might choose to retain the unit.
Starlink has been a topic of IPO speculation for years, with SpaceX CEO Elon Musk hinting at the possibility since 2021. Musk mentioned that an IPO would be likely once the company could forecast cash flow more accurately. Despite earlier suggestions of a delayed IPO to employees, recent developments suggest that Starlink is on track for substantial financial success. The satellite internet service is expected to bring in about $10 billion in sales next year, surpassing the revenue from SpaceX's primary rocket launch operations.
Since its inception in 2002, SpaceX has deployed over 5,000 satellites and now delivers high-speed internet to over 60 countries worldwide. This expansion places Starlink in direct competition with other satellite internet projects, such as Amazon (NASDAQ:AMZN)'s Project Kuiper.
The consideration of an IPO follows a significant financial milestone for Starlink. On November 2, 2023, Elon Musk announced via the X social media platform that Starlink had achieved cash flow breakeven. This achievement marks a notable shift from previous financial struggles and underscores the company's goal to steer clear of bankruptcy.
As SpaceX weighs its options for Starlink's future, investors and industry observers will be closely monitoring any further developments regarding this potential market entry.
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