Billionaire Ron Baron, whose company Baron Capital is heavily invested in SpaceX and Tesla, told CNBC on Friday he expects Starlink will have an initial public offering “in 2027 or so” — the latest promising sign for SpaceX’s popular satellite internet service.
A SpaceX Falcon 9 rocket is seen in this time exposure from Cocoa Beach, Florida as it launches the company’s third Starlink mission on Jan. 6, 2020 from Cape Canaveral Air Force Station. The rocket is carrying 60 Starlink satellites as part of a constellation of thousands of satellites designed to provide internet service around the world. (Photo by Paul Hennessy/NurPhoto via Getty Images)
NurPhoto via Getty Images
Key Takeaways
Baron said, “by the time they go public with SpaceX, with Starlink … in 2027 or so, four years…”
He also said he expects the company will be worth around $250 billion to $300 billion by that time.
CEO Elon Musk, and other company leaders, have talked about spinning off Starlink multiple times in recent years.
Key Background
SpaceX launched Starlink in beta in 2020. The service uses a global network of thousands of satellites to provide internet access to users around the world. While SpaceX is most famous for creating rocketships and for its lofty goal of putting a human colony on Mars, Starlink comprises a huge portion of the company’s cash flow.
Euroconsult, a space and satellite industry analysis firm, estimated Starlink will make up upwards of 40% of the company’s revenue, or $3.2 billion, in 2023. Last week, Musk announced the service had achieved break-even cash flow and, in September, a Wall Street Journal report revealed the company had reached $1.4 billion in revenue.
In June, SpaceX was valued at $150 billion in an insider share sale, Bloomberg reported.
Big Number
$1.7 billion. That’s how much Baron Capital’s stake in SpaceX is worth, the billionaire told MarketWatch last week.
Forbes Valuation
We estimate Baron’s net worth to be $5 billion as of Friday, making him the 558th-wealthiest person on Earth. We estimate Musk’s net worth to be $226.5 billion, making him the richest person on Earth.
This article was first published on forbes.com and all figures are in USD.
