Space Exploration Technologies Corp. CEO Elon Musk announced Monday that the company plans to publicize its satellite broadband unit Starlink, but not until revenue growth is “smooth” and “predictable.”
what happened: Such an early public opportunity comes “many years into the future” because the public market “does not like irregular cash flows,” the billionaire added with a laugh.
Musk added that Starlink could be trusted to prioritize retail investors whenever such an IPO occurs. The CEO of SpaceX claimed, “I am a big fan of small retail investors. They will make sure they get the highest priority.
We will probably starlink IP IPOs, but only in the next few years when revenue growth is smooth and predictable. Public market * not like irregular cash flow *. I’m a big fan of small retail investors. Will make sure they get priority. You can catch me.
– Elon Musk (elonmusk) September 28, 2020
SpaceX is considered one of the most valuable venture-backed industries in the United States, with an estimated valuation of more than 46 46 billion as of August.
Why it’s important: In March, musk, which also leads Tesla Inc. (Nasdaq: TSLA), said publicly that it is not considering an IPO for Starlink, saying, “We are thinking about that zero.”
The broadband project involves the launch of 12,000 satellites into low Earth orbit to provide global internet coverage.
Analysts argue that the value of SpaceX is largely in its broadband arm, Starlink, and that if the project succeeds it could be valued at 120 120 billion, or it could fall to 5 5 billion.
Photo courtesy: SpaceX via Flickr
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