Would you like to invest in SpaceX’s Starlink one day? According to CEO Elon Musk, that day may be coming in the future.
Earlier this afternoon, it was revealed SpaceX Starlink internet was helping first responders in Washington State assist the Town of Malden recover from wildfire devastation.
In the Twitter thread where Musk responded he was “glad SpaceX could help”, another user asked the CEO if he could “please go IPO with it and somehow let retail investors in early?”
We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable. Public market does *not* like erratic cash flow haha. I’m a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it.
— Elon Musk (@elonmusk) September 28, 2020
Musk, known to reply to his customers and fans, responded, “We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable”
“Public market does *not* like erratic cash flow haha. I’m a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it,” added Musk.
Currently, SpaceX remains a private company, but this is not the first time we’ve learned about Starlink’s likely spinoff to become an IPO.
Back in February, SpaceX’s chief operating officer said at a private investor event in Miami put on by JPMorgan Chase & Co. Starlink is the right fit to go public.
“That particular piece is an element of the business that we are likely to spin out and go public,” said Gwynee Shotwell, SpaceX COO, reported Bloomberg. “Right now, we are a private company, but Starlink is the right kind of business that we can go ahead and take public.”
Later in March, Musk denied to CNN Business SpaceX planned to take Starlink public, noting they were putting “zero” thought towards the idea. Now, it appears Musk has a change of heart.
In terms of privately held companies, CB Insights pegs SpaceX at a $36 billion valuation, making it the third most valuable worldwide. It’s unclear how much Starlink could be worth as a standalone spinoff. One thing is sure, Musk and company have clear goals set for Starlink.
SpaceX was set to launch yet another payload of Starlink satellites into space today, but the launch was delayed due to inclement weather.
