SpaceX to Launch Tender Offer with a $150B Valuation in Dec: Report
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SpaceX to Launch Tender Offer with a $150B Valuation in Dec: Report

SpaceX is reportedly planning to begin a tender offer in December that would value the spacecraft company at $150 billion.
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SpaceX, the world’s biggest satellite operator co-founded by Elon Musk, is looking to launch a tender offer next month, the New York Post reported. The new fundraising is expected to value the company at $150 billion, unchanged from the July tender offer

SpaceX’s Valuation Expected to Remain Unchanged

According to the New York Post, Elon Musk’s SpaceX reportedly plans to initiate a tender offer in December that will value the spacecraft maker at around $150 billion. 

The report comes months after SpaceX secured $750 million in a tender offer in July at a price per share of more than $80. At the time, the share sale also valued the company close to $150 billion. In January, its valuation stood at $137 billion following an earlier fundraising.

Starting a tender offer next month may confirm that Musk is not looking to launch an initial public offering (IPO) for SpaceX’s satellite unit, Starlink, the report suggested. Earlier this month, Bloomberg reported that the Twitter boss contemplated taking Starlink public as early as 2024.  The billionaire denied the claims, saying they are “false.”

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SpaceX Turned a Profit in Q1; Cathie Wood’s ARK Venture Fund Invests in the Company

Meanwhile, the New York Post’s report alleged that there are indicators that Musk may not be seeking a higher valuation for SpaceX. Citing a source familiar with the matter, the publication wrote that investors “are still unsure about the direction of Starlink,” representing the bulk of SpaceX’s value. 

A report by the Wall Street Journal from earlier this year revealed that SpaceX turned a profit during Q1 thanks to strong revenue growth. Notably, the company posted a Q1 profit of $55 million on revenue of $1.5 billion, marking a sharp rebound from 2022, in which the rocket company lost $559 billion.

On the other hand, Starlink disclosed a loss and revenue of $1.4 billion, although additional information specifying its profitability was not provided. Previous rumors signaled that Musk wants to see Starlink become profitable, or at least approach profitability, before launching a potential IPO. 

This month, Cathie Wood’s Ark Venture Fund has invested in SpaceX. The fund has a mandate that includes investments in private and public companies, and as of October’s end, it held $22.9 million in net assets.

Do you think Elon Musk will eventually spin off and turn Starlink into a standalone public company? Let us know in the comments below.