Starlink IPO Consideration
SpaceX is exploring options to possibly take its subsidiary, Starlink, public. Industry estimates indicate that Starlink is the largest source of revenue for SpaceX, generating positive free cash flow.
Current valuation for SpaceX is approximately $350 billion, making this a potentially lucrative time for an IPO. Various structures for the public offering have been suggested, such as a partial spin-off or a tracking stock specifically for Starlink.
While the profitability of Starlink remains somewhat uncertain due to high satellite costs, its recurring subscription model provides a steady revenue stream. Analysts believe that a Starlink IPO could not only attract investor interest but also provide capital to reinvest in SpaceX’s core aerospace operations.
