Ron Baron expects SpaceX’s Starlink to go public around 2027
Written by worldOneFm on November 11, 2023
Billionaire investor Ron Baron told CNBC on Friday that he expects SpaceX to IPO its Starlink satellite internet service “in 2027 or so.”
“We think that by the time they go public with SpaceX, with Starlink … in 2027 or so, four years, the company will be worth $250 billion to $300 billion,” Baron said, speaking to CNBC’s Andrew Ross Sorkin.
Baron is a major backer of Elon Musk’s companies. Tesla and SpaceX rank as two of Baron Capital’s largest holdings. Earlier this month, Baron told MarketWatch his eponymous firm’s ownership of SpaceX stock was currently valued at about $1.7 billion.
SpaceX didn’t immediately respond to CNBC’s request for comment Friday.
The company’s leadership, including Musk, have discussed spinning off Starlink to take it public through an initial public offering once the business was “in a smooth sailing situation.” But timing of a Starlink IPO remains uncertain. Last year, Musk told employees that taking the business public wasn’t likely until 2025 or later.
Earlier this month, Musk announced that Starlink “achieved breakeven cash flow,” although he did not specify whether that milestone was hit on an operating basis or for a specified time period. SpaceX has launched more than 5,000 Starlink satellites to date and says the service has more than two million subscribers.
SpaceX’s valuation has soared to about $150 billion, with Starlink seen as a key economic driver of the company’s goals.
Asked why Musk would take public part or all of his space company, which has been private since its founding in 2002, Baron said “a lot of people have been investors for a long time, and they probably want exits.”
“I don’t want an exit in my lifetime, but there are people who want exits,” Baron said.
CNBC
