SpaceX faces several rumours about its unit becoming public while competing with Amazon’s project Kuiper.
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SpaceX IPO Rumors; New CPE; Project Kuiper Co-opetition
Space X, a rocket company in the United States owned by billionaire entrepreneur Elon Musk, has long been anticipated to offer an IPO ( Initial Public Offering) for its satellite internet business, Starlink, by the beginning of 2024.
However, in a post on X (Twitter), Elon Musk denied the rumour and called the news report ‘false’, claiming SpaceX had been moving the Starlink assets to public offerings.
The rumours about Starlink aired after Musk’s previous statements that he would list Starlink when the revenue is optimum, and he posted on X that he was “excited to announce that Starlink has achieved breakeven cash flow” earlier this month.
Justus Parmar, founder and CEO of Fortuna Investments, said, “I believe Musk will take Starlink out, not next year, but maybe 2025 or 2026. He’s waiting for a level of stability or predictability in revenue.”
“When the IPO happens, it will be an extremely strong catalyst for everything space-related,” added Parmar.
With an estimated value of $150 billion, SpaceX is the first privately owned company that has sent humans into Earth’s orbit. The company has recently begun offering a new terminal for its Starlink Low Earth Orbit (LEO) satellite service.
The terminal is designed with a ‘quickstand’ to help customers easily install it in a suitable location for satellite reception. Customers can link the quickstand with their smartphones to find the perfect position for it.
Currently, the new terminal is offered only to invited customers. More information can be found on Starlink’s official website.
Musk’s flourishing Starlink satellite business has invited competition from some of the most renowned International companies. Amazon has introduced a new project, Kuiper, to compete with Musk’s space business and launched two satellites to deliver the internet from space last month.
The project aims to provide high-speed broadband internet to unserved and underserved communities worldwide with a constellation of more than 3,200 satellites in Low Earth orbit (LEO).
Project Kuiper’s vice president of technology, Rajeev Badyal has said, “We’ve done extensive testing here in our lab and have a high degree of confidence in our satellite design, but there’s no substitute for on-orbit testing.”
According to the details provided by the company, the project Kuiper is set for a $10 billion investment. The company plans to launch its first operational satellites in early 2024 and conduct initial tests with customers at the end of 2024.
Although Amazon is a newcomer in this line and plans to launch more satellites this year, its project Kuiper is assumed to pose strict competition to SpaceX despite the fact that Musk’s company possesses years of experience in the space business.
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