Last Updated on November 11, 2023 by SPN Editor
SpaceX’s Starlink, the groundbreaking satellite internet service, is anticipated to become a publicly traded company in 2027, according to predictions by billionaire investor Ron Baron, a prominent supporter of Elon Musk’s ventures. Launched in beta in 2020, Starlink utilizes a vast network of satellites to deliver internet access globally, contributing significantly to SpaceX’s financial success.
Baron estimates that by the time Starlink goes public in 2027, its valuation could range between $250 billion and $300 billion. This projection is grounded in the current performance and future potential of the company. As of June, SpaceX, in an insider share sale, held a valuation of $150 billion. SpaceX leadership, including Elon Musk, has expressed the possibility of spinning off Starlink for an initial public offering once the business is in a stable position.
SpaceX’s Starlink has exhibited impressive performance since its inception, with Euroconsult estimating that it could contribute over 40% of SpaceX’s revenue, totaling $3.2 billion, in 2023. Musk recently announced that Starlink achieved break-even cash flow, and a Wall Street Journal report disclosed the company’s revenue reaching $1.4 billion in September.
Starlink, known for its fast internet speeds ranging from 50 to 500 Mbps, benefits from low latency due to its use of low Earth orbit satellites. Offering unlimited data, the service is particularly appealing in rural or remote areas lacking traditional infrastructure.
Starlink is also distinguished by its no-contract policy, allowing users flexibility in canceling their service at any time. However, it is acknowledged that Starlink comes with a higher cost compared to other satellite internet providers, encompassing equipment expenses and a monthly subscription fee.
As of November 2023, SpaceX’s Starlink is operational in multiple countries, including the U.S., Canada, the UK, France, Germany, Austria, the Netherlands, Ireland, Belgium, Switzerland, Denmark, Portugal, Australia, and New Zealand.
Plans are in place to achieve global coverage by the first quarter of 2023 through the ongoing deployment of satellites and ground stations. With its notable performance, ambitious plans, and the increasing demand for reliable internet access, SpaceX’s Starlink appears well-positioned for continued success and innovation.