SpaceX CEO Elon Musk, who also heads Tesla Inc TSLA, could hold an initial public offering for Starlink by 2025.
What Happened: Starlink, SpaceX’s satellite internet service, could be spun off by Musk, according to analysts at CCS Insight, reported CNBC.
“We think it makes perfect sense,” said Ben Wood in an interview with CNBC. He said, “Starlink is going to need to invest heavily.”
In its annual report of predictions, CCS Insights said that as Starlink’s revenue becomes “more predictable” and it expands its user base the company is “spun off to raise capital to expand its constellation of satellites” in order to meet escalating demand for its services, according to CNBC.
See Also: How To Invest In Space Startups
Why It Matters: Wood said that an IPO would help drive investment and consequently international expansion which would make Starlink “the go-to player for satellite broadband,” reported CNBC.
In June, Musk said that Starlink is not likely to go public until 2025. He told the company’s employees that he expects the business to be “in a smooth sailing situation” with “good predictability” before he could consider spinning off the service into a public company.
Musk revealed on Tuesday that Starlink is losing $20 million a month due to “unpaid service & costs” linked with enhanced security measures for cyberwar defense for its terminals in use in Ukraine — a country at war with Russia.
Image and article originally from www.benzinga.com. Read the original article here.