Summary: The hype around Starlink, a subsidiary of SpaceX, going public is growing, with Elon Musk hinting at a potential IPO between 2025 and 2026, pending financial stability. With its insider share sale valuing SpaceX at $180 billion, Starlink underscores its advancements in satellite internet and its pivotal role in the industry.

Is Starlink Going to IPO?

Despite widespread speculation, Starlink (as a subsidiary of SpaceX) has not confirmed an IPO date. The buzz around its potential public offering stems from its revolutionary approach to global satellite internet provision, achieving significant milestones like surpassing 100,000 subscribers in Australia. This expansion showcases Starlink's capacity to deliver high-speed internet to remote locations, underpinning its market dominance.

Elon Musk recently refuted claims of an imminent Starlink IPO by 2024, labeling such reports as unfounded. He has indicated a desire for an IPO once Starlink's financial growth stabilizes. This month, Starlink reported achieving cash-flow breakeven, marking a pivotal moment in its financial trajectory.

Insights from industry experts suggest a potential Starlink IPO could be on the horizon, possibly between 2025 and 2026, pending financial consistency. Such a move is anticipated to be a major inflection point for the space industry, according to Justus Parmar of Fortuna Investments.

Starlink Growth

Starlink IPO Stock Price

As a subsidiary of SpaceX, Starlink is steering towards an insider share sale targeting a valuation of $180 billion, according to Bloomberg. This valuation adjustment raises the share price to $97, up from $95, amidst a year marked by SpaceX executing over 90 launches and Starlink's customer base swelling to 2 million.

The sale, expected to garner between $500 million to $750 million, reflects SpaceX's and Starlink's remarkable progress in 2023. It propels SpaceX to the status of the world's second most valuable startup, trailing only behind ByteDance, valued at $268 billion.

Who Owns Starlink Equity?

Starlink operates under the SpaceX umbrella, Elon Musk's brainchild, with its equity spread across SpaceX itself, its founding team, employees, and an array of investors. Key stakeholders in SpaceX, thus having an indirect stake in Starlink, encompass investors like Elon Musk (holding a 42% share), alongside influential investors such as Chamath Palihapitiya, Jason Calacanis, Fidelity Investments, Alphabet Inc., Baillie Gifford, and Valor Equity Partners. The forthcoming IPO of Starlink presents a window for prospective investors to acquire a share of the company, tapping into the burgeoning satellite internet sector's growth prospects.

What is Starlink?

Starlink, an audacious project under Elon Musk's SpaceX umbrella, seeks to redefine global connectivity by deploying a vast network of low Earth orbit (LEO) satellites. This innovative constellation is designed to deliver high-speed, low-latency broadband services even to the most remote and underserved locations. Harnessing cutting-edge satellite technology and dynamic inter-satellite links, Starlink disrupts the traditional telecommunications sector, fostering a new era of ubiquitous internet access and bridging the digital divide.

Bottom Line

While excitement builds around a potential Starlink IPO, confirmation awaits as Elon Musk opts for financial prudence before making the leap. Predictions hint at a public offering window between 2025 and 2026, reflecting a strategic patience for fiscal solidity. Starlink's upcoming insider share sale, reinforcing its valuation and SpaceX's market prominence, draws keen investor interest.