Elon Musk Denies Reports On Starlink IPO As ‘False’

Elon Musk Denies Reports On Starlink IPO As ‘False’
11/15/2023 9:08am. (Benzinga Newswire)

SpaceX owner Elon Musk has denied reports that a split-company IPO (first public issue) of his company’s Starlink satellite business is being prepared.

What Happened: Musk Says Starlink’s IPO Under Discussion In 2024 “False” Over Bloomberg Report.

Citing “people with knowledge of the matter,” discussions are underway about an IPO of “end of 2024,” with SpaceX reportedly preparing to transfer its Starlink assets to a wholly owned subsidiary for a transition into an independent public company.

Speculation has continued since U.S. Bloomberg reported that Starlink split could be possible, as the Tesla CEO raised in September 2020.

“Maybe we’ll IPO Starlink, but after a few years when earnings growth is stable and cash flow is predictable,” he said at the time, “the open market doesn’t like erratic cash flow.”

Although SpaceX is not required to disclose financial details as a private company, it was reported to have made small gains earlier this year and after losing annual amounts in 2021 and 2022.

Although revenue is not necessarily consistent with profitability, SpaceX is reported to have revenues of about $9 billion this year and $15 billion in 2024.

Starlink, SpaceX’s satellite internet service is expected to outperform its 母 company rocket launch business on a revenue basis in the coming quarters as it makes strong profits.

That makes Starlink thought to be ready to go public, and even with Musk’s denials, it’s unlikely to cool speculation that an IPO in 2024 could still be possible.

He had promised that only large institutional investors would not benefit.