Space Exploration Technologies Corp CEO Elon Musk revealed Monday that the company has plans to take its satellite broadband unit Starlink public, but not until the revenue growth is "smooth" and "predictable."
What Happened: Such an initial public offering would come "several years in the future" as the public market doesn't "like erratic cash flow," the billionaire suggested, adding a laugh.
Musk added that whenever such an IPO happens, Starlink can be trusted to prioritize retail investors. "I’m a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it," the SpaceX CEO claimed.
We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable. Public market does *not* like erratic cash flow haha. I'm a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it.
— Elon Musk (@elonmusk) September 28, 2020
SpaceX is considered to be one of the most valuable venture-backed businesses in the United States, with an estimated valuation above $46 billion as of August.
Why It Matters: In March, Musk, who also leads Tesla Inc (NASDAQ: TSLA), said publicly that he was not considering an IPO for Starlink, saying, “We’re thinking about that zero.”
The broadband project involves launching 12,000 satellites in low Earth orbit in order to provide global internet coverage.
Analysts contend that SpaceX’s value is mostly within its broadband arm, Starlink, and if the project is a success, it could achieve a $120 billion valuation, or else it could drop to $5 billion.
Photo courtesy: SpaceX via Flickr
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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