(Reuters) – Elon Musk on Wednesday denied a report that his rocket company SpaceX was discussing an initial public offering (IPO) for its satellite internet business, Starlink, as soon as 2024.
He called it “false” in a reply to a post on social media platform X that shared a Bloomberg News report saying SpaceX had been moving the unit’s assets to a wholly owned unit that would ultimately be spun off.
The billionaire entrepreneur has previously said he intended to list Starlink when revenue growth and cash flow became smooth and predictable. Earlier this month, he said Starlink had achieved cash-flow breakeven.
SpaceX has an estimated value of $150 billion and was the first private company to send humans into orbit. Its breakthroughs have left rivals, including Jeff Bezos’ Blue Origin scrambling to keep pace as reusable rockets significantly reduce launch costs.
The Starlink unit is the world’s largest satellite operator. On Wednesday, it obtained a contract to offer free internet in Mexico until the end of 2026.
“I believe he (Musk) will take Starlink out, not next year, but maybe 2025, 2026. He’s waiting for a level of stability or predictability in revenue,” said Justus Parmar, founder and CEO of venture capital firm Fortuna Investments.
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.
When the IPO happens, it will “be an extremely strong catalyst for everything space related”, Parmar said.
(Reporting by Niket Nishant and Akash Sriram in Bengaluru; Editing by Anil D’Silva and Arun Koyyur)