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Business News/ Companies / News/  Billionaire Elon Musk's SpaceX explores insider share sale, valued at over $175 billion
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Billionaire Elon Musk's SpaceX explores insider share sale, valued at over $175 billion

Discussions are underway, aiming for a tender offer valued between $500 million and $750 million, sources said, adding that the potential share price could be approximately $95 each.

File image: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, formerly known as Twitter (REUTERS)Premium
File image: Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X, formerly known as Twitter (REUTERS)

Billionaire Elon Musk's space exploration company SpaceX is in talks to sell insider shares at a significant valuation exceeding $175 billion, as per a Bloomberg report. Discussions are underway, aiming for a tender offer valued between $500 million and $750 million, sources told the publication, adding that the potential share price could be approximately $95 each.

The terms and size of the tender offer remain flexible, subject to the interest of both sellers and potential buyers within the company, the report added.

This valuation leap signifies a notable increase from the $150 billion valuation secured by SpaceX earlier this summer during a tender offer. Should this materialise, SpaceX would rank among the world’s top 75 companies by market capitalisation. This puts it in league with giants such as T-Mobile USA Inc. ($179 billion), Nike Inc. ($177 billion), and China Mobile ($176 billion), according to data compiled by Bloomberg.

A Dominant Force in the Space Industry

Headquartered in Hawthorne, California, the Musk-led SpaceX holds a commanding position in the commercial space launch services market, primarily through its Falcon rockets. The company conducts missions for private-sector clients, governmental agencies such as NASA, and other entities, solidifying its market dominance.

Moreover, SpaceX operates Starlink, an internet service powered by an expanding fleet of satellites in low-Earth orbit, serving as a lucrative arm of its operations.

Promising Growth Trajectory

Recent reports from Bloomberg News indicate SpaceX's estimated revenue for this year to hover around $9 billion, stemming from its rocket launch and Starlink ventures. Forecasts suggest a substantial rise in sales to approximately $15 billion by 2024, marking a trajectory of significant growth.

In further strategic moves, discussions revolve around a potential initial public offering (IPO) for Starlink as early as late 2024. This strategic move aims to capitalize on the robust demand for space-based communication services, indicating SpaceX's proactive steps in leveraging market opportunities.

SpaceX, officially known as Space Exploration Technologies Corp., did not respond to queries, the report added. 

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Published: 07 Dec 2023, 07:31 AM IST
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