Elon Musk refuted claims on Wednesday that SpaceX, his space exploration company, was engaging in discussions about a potential initial public offering (IPO) for its satellite internet division, Starlink, by 2024. Calling the assertion "false," Musk responded to a social media post on platform X that had shared a Bloomberg News report suggesting SpaceX's transfer of the unit's assets to a wholly-owned subsidiary was a precursor to a spin-off.
Despite Musk's earlier expression of intent to take Starlink public once its revenue growth and cash flow achieved stability, he dismissed the recent IPO speculation. Musk revealed earlier this month that Starlink had reached a point of cash-flow neutrality.
Valued at approximately $150 billion, SpaceX holds the distinction of being the first private company to transport humans to orbit, prompting competitors like Jeff Bezos' Blue Origin to adapt with reusable rockets to cut launch expenses.
As the largest global satellite operator, Starlink recently secured a contract to provide free internet services in Mexico until the end of 2026. Musk also announced last month that Starlink would offer internet connectivity to internationally recognized aid organizations in Gaza.
While Starlink experienced a significant revenue increase last year, reaching $1.4 billion, according to The Wall Street Journal, this fell short of CEO Elon Musk's earlier targets outlined in a 2015 presentation, projecting nearly $12 billion in revenue and $7 billion in operating profit by 2022. Additionally, Starlink's customer acquisition has been slower than anticipated, with just over a million active subscribers by the end of 2022, below earlier expectations.
