In recent developments, SpaceX, the world’s second-most valuable closely held startup, is reportedly considering a tender offer ranging from $500 million to $750 million. Sources reveal that the initial share price discussions around $95 have seen a significant boost, reflecting robust investor interest in both the renowned space transportation company and its rapidly expanding Starlink internet-from-space service.
This potential tender offer, a confidential move as per insiders, underscores the escalating demand among investors to secure a stake in SpaceX. The Hawthorne, California-based company, officially known as Space Exploration Technologies Corp., has not officially commented on the matter as of yet.
Tender offers of this nature are commonly employed by closely held companies, providing employees with an opportunity to unlock the value of their holdings before an initial public offering (IPO). Simultaneously, it allows investors to increase their equity share in the company.
SpaceX’s dominance in the commercial space industry is unmistakable, with over 90 successful launches of its Falcon 9 and Falcon Heavy rockets in the current year alone, setting a record for a US commercial launch company. Analysts assert that SpaceX holds a de-facto monopoly in the commercial launch market with its Falcon 9.
The company’s Starlink initiative, which deploys more than 5,000 satellites in low-Earth orbit to provide broadband internet to Earth’s customers, has surpassed 2 million active users this year. SpaceX’s strategic partnerships, including a multibillion-dollar contract with NASA to develop its Starship rocket into a lunar lander, have further solidified its position as a valuable launch provider for both the US government and the National Aeronautics and Space Administration.
With anticipated revenues of approximately $9 billion this year, encompassing rocket launches and Starlink operations, SpaceX’s sales are projected to reach around $15 billion by 2024. Moreover, the company is reportedly considering an IPO for Starlink in late 2024 to capitalize on the escalating demand for space-based communication services. As SpaceX continues to push the boundaries of space exploration and satellite-based internet, its trajectory towards new heights in valuation remains unmistakable.
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