By 2025, Elon Musk might separate Starlink from SpaceX and launch an IPO, according to a study from tech research firm CCS Insight.
Starlink, a subsidiary of Musk’s space exploration company, uses satellite technology to deliver broadband internet to subscribers.
Every year, CCS Insight publishes a study with predictions for the tech industry. As Starlink’s “income becomes more predictable and it gets more and more subscribers, the company is split off to obtain cash to extend its constellation of satellites” to satisfy growing demand for its services, the analyst firm stated in this year’s edition, which was published on Tuesday.
Ben Wood, chief of research at CCS Insight, told CNBC in an interview that “we think that makes great sense.” “Starlink will have to make significant investments.”
Initial public offerings (IPOs), according to Wood, will promote international expansion, increase investment in SpaceX, and “become Starlink the go-to player for satellite broadband.”
Over the past few years, SpaceX management have discussed an IPO. Musk predicted that Starlink would go public in 2021 after revenue was more stable.
According to CNBC, who quoted Musk’s remarks at an all-hands meeting of SpaceX employees earlier this year, the billionaire said an IPO of Starlink was unlikely until 2025 or later.
According to an email to SpaceX staff that CNBC was able to get from Musk, an offering was previously planned for this year. It will probably make sense to take Starlink public in around three years or so, Musk wrote in an email written in May 2019.
Due to its involvement in the Russia-Ukraine conflict, Starlink has recently received attention. To keep Ukraine’s troops online during its conflict with Russia even as communication infrastructure is destroyed, SpaceX has given Starlink internet terminals.
However, Musk stated on Friday that due to the expense, SpaceX cannot continue to support Starlink terminals in Ukraine “indefinitely.” However, Musk, the CEO of the electric vehicle manufacturer Tesla
, claimed on Saturday that despite Starlink “still losing money,” SpaceX will continue to provide “free” cash to the Ukrainian government.