According to reports, Elon Musk has extended the timescale for a possible Starlink IPO

Elon Musk’s aerospace company SpaceX operates the Starlink satellite network, which gives internet access to much of the world. It’s a global network of over 1,000 satellites that provides high-speed Internet access from everywhere on the globe. Starlink has over 10,000 customers worldwide and has received regulatory clearance in the UK, Greece,  Australia, and Germany. According to a source quoting statements made by SpaceX CEO Elon Musk to staff last week, the business’s broadband provider Starlink would not be available to the public till 2025 or later.

According to CNBC, which cited an audio tape of a June 2 SpaceX staff meeting, Musk said he didn’t know when Starlink would be able to offer shares on a public stock exchange, but estimated it would be in 3 – 4 years.

Prior to launching an IPO (initial public offering) of shares, he allegedly reiterated the need for increased financial stability in Starlink’s operations. SpaceX has faced concerns from potential investors about splitting Starlink out of SpaceX for an IPO for years but has yet to answer.

Musk reportedly sent an email to Starlink staff in May 2019 regarding how it may make sense to put the firm public in 3 years or so, according to CNBC. When asked about rumors that SpaceX was contemplating spinning off Starlink in March 2020, Musk said he was “thinking about that zero,” and that he was primarily focused on avoiding the bankruptcy that other satellite constellation firms have experienced.

Musk announced in a tweet in February 2021 that Starlink would go public once “we can reasonably estimate cash flow.” In a tweet on February 9, 2021, he said, “SpaceX needs to travel through a deep gulf of negative cash flow within the next year or so to render Starlink financially viable.”

SpaceX has been gathering billions of dollars from commercial investors to help Starlink expand its coverage around the world and build a critical mass of users to keep the company afloat. Starlink’s services are currently available in 32 countries and have approximately 500,000 subscribers, as per a video presentation Musk tweeted on June 5.

Inflation had pushed SpaceX to raise rates for Starlink earlier this year, according to the company. The cost of service rose from $99 to $110 per month for Starlink’s regular service package in the United States.

Musk reportedly cautioned SpaceX staff on June 2 that if they fail to fulfill expectations, their stock can lose value, according to CNBC, adding that stock prices are a diversion.

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