Billionaire investor Ron Baron told CNBC on Friday that he believes SpaceX, which is founded by Elon musk, will make its Starlink satellite internet service available to the public through an initial public offering (IPO) around 2027.
Going Public and Investor Perspectives
He mentioned that “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 is a big supporter of Elon Musk’s companies, with Tesla and SpaceX being among the largest holdings in Baron Capital, his investment firm. He also mentioned that “his firm currently holds SpaceX stock valued at about $1.7 billion.”
The company’s leaders, including Musk, have talked about making Starlink a separate entity and having it go public through an initial public offering (IPO) once everything is going smoothly.
However, when exactly this will happen is uncertain. Musk mentioned to employees last year that it probably wouldn’t occur before 2025. Recently, Musk shared that Starlink has reached a point where its cash flow is breaking even, but he didn’t specify if this was on an operational basis or for a certain period.
Future of SpaceX and Starlink
SpaceX has launched over 5,000 Starlink satellites so far, and the service has attracted more than two million subscribers.
SpaceX is now valued at approximately $150 billion, and Starlink is considered a crucial factor in achieving the company’s objectives.
When questioned about why Elon Musk might decide to make part or all of his space company public, Baron explained that many investors have been involved for a significant period and may be seeking opportunities to sell their investments.
“I personally don’t seek an exit during my lifetime, but there are investors who do,” Baron stated.
Moreover, In the past month Amazon successfully launched its first internet satellites to rival starlink.
Conclusion
Ron Baron foresees SpaceX’s Starlink going public around 2027, valuing it at $250-300 billion. A major backer of Elon Musk’s ventures, Baron’s firm holds $1.7 billion in SpaceX stock. The timing of Starlink’s IPO is uncertain, potentially after 2025.
