Elon Musk is in another public-private business conundrum. Starlink — SpaceX’s satellite internet service — won’t go public until 2025, despite investors’ enthusiasm about a potential initial public offering (IPO), one which was reportedly set to happen this year.
By Yaёl Bizouati-Kennedy
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“I’m not sure exactly when that [IPO] is, but maybe it will be like — I don’t know, just guessing — three or four years from now,” Musk said at an all-hands meeting of the private company’s employees on June 2, according to an audio recording obtained by CNBC.
Musk said that the Starlink business needs to be “in a smooth sailing situation” with “good predictability,” according to CNBC, adding at that point, “I think spinning it off as a public company can make a lot of sense.”
CNBC reports that in a 2019 email, Musk had planned to take the company public “in about three years or so.”
During the meeting, Musk also told employees that they “should not think of things going public as, like, a sure path to riches,” according to CNBC. “The public markets are fickle” and “really pistol-whip you if you don’t meet expectations,” he said.
The airline said it will equip its Airbus A330 and A321neo aircraft, as well as an incoming fleet of Boeing 787-9s, with Starlink’s satellite internet connectivity service, according to a press release.
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SpaceX’s goal of $1.7 billion in new funds would bring the price to $70 a share — a 25% increase — according to a company-wide email obtained by CNBC.
