Elon Musk’s reusable rocket maker and satellite internet company, SpaceX, has reportedly inched closer to $180 billion net worth, making it the second most-valuable startup in the world.
A Bloomberg News reports that the company intends to sell insider shares at $97 apiece in a tender offer, that could range from $500 million to $750 million.
Recall that in July 2022, the company raised more than $2 billion, including a $250 million round, that saw it valued at $127 billion during an equity round in May.
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In January this year, the rocket maker and satellite internet company raised $750 million in a new round of funding that valued it at $137 billion.
Fast forward to August of the same year, Space X had reached an agreement with both new and existing investors to offer up to $750 million in stock from insiders for $81 per share in July, valuing it at approximately $140 billion.
According to sevral reports, SpaceX is said to be generating nearly $2 billion a month in revenue, with almost half a billion coming solely from its internet service, Starlink.
The company has developed a dominant position in the space transportation market, executing over 64% of commercial rocket launches to send satellites, scientific instruments, and other payloads to orbit globally in the first six months of this year.
Headquartered in Hawthorne, California, SpaceX holds a commanding position in the commercial space launch services market, primarily through its Falcon rockets, with more than 4,000 satellites in its operational constellation.
The company was founded in 2002 by astute entreprenuer Elon Musk, to reduce space transportation costs and colonizing Mars. It conducts missions for private-sector clients, governmental agencies such as NASA, and other entities, solidifying its market dominance.
Also, SpaceX operates Starlink, an internet service powered by an expanding fleet of satellites in low-Earth orbit, serving as a lucrative arm of its operations.
In a further strategic move, discussions revolve around a potential initial public offering (IPO) for Starlink satellite internet service, as early as late 2024. This strategic move aims to capitalize on the robust demand for space-based communication services, indicating SpaceX’s proactive steps in leveraging market opportunities.
This impressive performance has led to rumors that SpaceX may spin-off and IPO Starlink as soon as late 2024. But the company’s CEO, Musk described those reports as “false,” and said that he doesn’t expect a Starlink public offering until 2027.
Meanwhile, several analysts have predicted that when Space X is finally listed in the IPO, it will be an extremely strong catalyst for everything space-related.
SpaceX has boosted its insider share price to $97 each, for a planned tender offer of $500 to $750 million, Bloomberg reports, citing anonymous sources — bringing the space exploration startup’s value close to $180 billion. Strong investor demand drove an increase from the $95 a shareprice reported just last week. SpaceX is the world’s second-most valuable closely held startup and has what some analysts call a de facto monopoly on the commercial space launch market. Also attractive to investors: Its Starlink satellite initiative, and its multibillion-dollar NASA contract to develop a lunar lander. SpaceX is expected to bring in about $9 billion in revenue this year from the Starlink and rocket launch businesses, and boost sales to about $15 billion next year. (LinkedIn News)
Meanwhile, Musk may be planning to start a university: “Tesla and SpaceX CEO Elon Musk is graduating from electric vehicles and spacecraft and leaning into education. Based on tax filings for his charitable organization, The Foundation, Musk plans to start with a STEM-focused primary and secondary school in Austin before establishing a “university dedicated to education at the highest levels,” reports Bloomberg. The latter will incorporate a standard curriculum with “hands-on … simulations, case studies, fabrication/design projects and labs.” This isn’t the first time Musk has dabbled in education: He set up a school called Ad Astra for kids of SpaceX employees, including his own. The application to the Internal Revenue Service was filed in October 2022 and approved in March, Bloomberg notes.”