Elon Musk Could Spin Off Starlink From SpaceX And Take It Public By 2025, Says Analyst: ‘It Makes Perfect Sense’

Articles From: Benzinga
Website: Benzinga

By:

Benzinga Staff Writer

SpaceX CEO Elon Musk, who also heads Tesla Inc, could hold an initial public offering for Starlink by 2025.

What Happened: 

Starlink, SpaceX’s satellite internet service, could be spun off by Musk, according to analysts at CCS Insight, reported CNBC.

“We think it makes perfect sense,” said Ben Wood in an interview with CNBC. He said, “Starlink is going to need to invest heavily.”

In its annual report of predictions, CCS Insights said that as Starlink’s revenue becomes “more predictable” and it expands its user base the company is “spun off to raise capital to expand its constellation of satellites” in order to meet escalating demand for its services, according to CNBC.

Why It Matters: 

Wood said that an IPO would help drive investment and consequently international expansion which would make Starlink “the go-to player for satellite broadband,” reported CNBC.

In June, Musk said that Starlink is not likely to go public until 2025. He told the company’s employees that he expects the business to be “in a smooth sailing situation” with “good predictability” before he could consider spinning off the service into a public company.

Musk revealed on Tuesday that Starlink is losing $20 million a month due to “unpaid service & costs” linked with enhanced security measures for cyberwar defense for its terminals in use in Ukraine — a country at war with Russia.

Originally Posted October 19, 2022 – Elon Musk Could Spin Off Starlink From SpaceX And Take It Public By 2025, Says Analyst: ‘It Makes Perfect Sense’

Disclosure: Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.