SpaceX’s bet on satellite internet is paying dividends

SpaceX is discussing plans to spin off its Starlink satellite internet service via IPO as early as late 2024, and has already begun moving Starlink's assets to a wholly-owned separate unit, per a newly-published Bloomberg report.

And while CEO Elon Musk said the report was more false than your grandpa’s teeth, the billionaire entrepreneur has previously indicated Starlink will go public at some point in the future once its revenue is “reasonably predictable.”

Speaking of revenue… Earlier this month, Musk said Starlink has finally achieved breakeven cash flow. And Bloomberg previously reported SpaceX expects Starlink to generate ~$10 billion in sales next year, eclipsing its rocket launch business for the first time and accounting for two-thirds of SpaceX's overall revenue.

• The estimated figure would represent a significant jump compared to 2022, when Starlink reportedly earned $1.4 billion (up from $222 million in 2021). Starlink’s 2023 revenue isn’t publicly available.
• SpaceX investors say they’re closely watching the financial performance of Starlink, since it makes up a large portion of the overall company’s ~$150 billion valuation.

📸 Big picture: Since launching its first satellite in 2019, Starlink has grown to become the largest operator in the world, accounting for more than half of the 8,700+ active satellites currently orbiting Earth. The SpaceX subsidiary had more than 2 million internet customers spread across all seven continents as of late September.

🛰️ Fun fact: Starlink’s satellites are designed to last five years before they fall out of orbit and burn up, meaning the company has to continually manufacture and launch them to keep up its services.