Billionaire investor Ron Baron predicts that SpaceX will take its Starlink satellite internet service public through an Initial Public Offering (IPO) in 2027, estimating that the company will be valued between $250 billion to $300 billion at that time. Baron, a major backer of Elon Musk’s companies, stated that Tesla and SpaceX are two major holdings of Baron Capital, with the value of its SpaceX stock currently estimated at about $1.7 billion. SpaceX has been considering spinning off Starlink as a separate entity for an IPO, with Elon Musk previously stating this was unlikely to happen until 2025 or later. Starlink, which achieved breakeven cash flow earlier this month, has launched over 5,000 satellites and currently boasts more than two million subscribers. The anticipated IPO is speculated to be a response to the desire of long-time investors for an exit.
The potential public offering of SpaceX and its Starlink service reflects the considerable global value that the company has attained, with Baron estimating its worth between $250 billion to $300 billion once it goes public in 2027. This plan aligns with the recent announcement by Elon Musk, SpaceX’s founder, that Starlink had achieved breakeven cash flow, indicating its financial sustainability. However, the timing of the IPO remains uncertain, with prior statements by Musk indicating that a public offering might not occur until 2025 or later. The decision to take SpaceX public is also seen as a response to the desire of long-time investors for exits, further confirming the company’s growing significance in the space industry.
Baron’s projection for SpaceX’s valuation and the plan for Starlink’s IPO are indicative of the company’s increasing presence in the global market. With its substantial investment in SpaceX stock, Baron Capital anticipates substantial growth and profitability for the company, further cementing its status as a key player in Elon Musk’s business empire. By going public, SpaceX and Starlink will open up new opportunities for investors while solidifying their position as leaders in space exploration and satellite internet services.
