Starlink: the mysterious rise to stock market listing

In the financial world, anticipation is growing for the potential listing of Starlink, Elon Musk’s satellite company. Rumors are circulating that suggest Starlink may separate from its parent company SpaceX and make its debut in the stock market through an initial public offering (IPO). However, the South African magnate has categorically denied these speculations, dismissing the news reported by Bloomberg as “false” which suggested this direction by 2024.

As reported by Reuters, it appears there is a discrepancy between Musk’s statements and the information that has emerged from anonymous sources. These sources claim that SpaceX has created a separate division for Starlink, turning it into a subsidiary company. The motivation behind this move is rooted in Musk’s previous intention to list the satellite constellation, but it seems that now they are waiting for revenues and cash flow to reach a level of stability before proceeding with such an operation.

Back in November, Musk announced that Starlink had reached cash flow breakeven, a significant step towards a potential IPO. Currently, SpaceX is valued at around $150 billion, a remarkable achievement thanks to a series of pioneering initiatives, including the launch of humans into space. Furthermore, Starlink has gained a leading position as the world’s largest satellite operator and has recently signed an agreement to provide free internet services in Mexico until 2026.

Financial experts see the potential IPO of Starlink as a powerful catalyst for the space industry. Justus Parmar, founder and CEO of venture capital firm Fortuna Investments, stated, “I believe Musk will soon separate Starlink from SpaceX. Not in the next year, but maybe in 2025 or 2026. He is just waiting for a level of stability or predictability of revenues.” In any case, the possibility of Starlink’s listing continues to keep the financial world on its toes, awaiting further developments.

Interest in the evolution of Starlink is fueled not only by its dominant position in the satellite sector but also by its promise to democratize access to the Internet worldwide. With the recent agreement to provide free internet in Mexico, Starlink is demonstrating its ability to revolutionize the telecommunications market.

However, there are still many uncertainties to be resolved before a potential Starlink IPO. The stability of revenues and cash flow will be a crucial factor, and Musk seems to be waiting for these elements to reach a certain level before proceeding. In the meantime, the eyes of the financial world will remain focused on Starlink, awaiting further developments that could change the landscape of the space and telecommunications industry.