SpaceX Contemplates "Liquidity Round" at $200 Billion Valuation

Elon Musk's SpaceX is allegedly in discussions with investors and insiders about selling existing shares, which could potentially value the company at nearly $200 billion. SpaceX is currently the global leader in rocket launches, and its subsidiary, Starlink, is a major player in the market for space-based high-speed internet.

Details of the Proposed Tender Offer

According to Bloomberg sources, the forthcoming tender offer, which is likely to be finalized in June, is predicted to be between $108 and $110 per share. This would enable insiders, such as early investors and employees, to sell their shares. The terms are yet to be finalized, and the size of the tender offer could vary depending on the level of interest from both insider sellers and potential buyers.

Elon Musk's Response to the Bloomberg Report

Musk had to rectify the initial Bloomberg report, which led him to comment on a post by a user named Mario Nawfa, stating that "SpaceX has no need for additional capital and will actually be buying back shares. We do liquidity rounds for employees and investors every ~6 months." Nawfa then responded to Musk's post, stating, "Bloomberg got it wrong again. Deleted the post, and will do a new post debunking them."

Implications of a $200 Billion Valuation

A valuation of $200 billion would indicate a $20 billion increase from the $180 billion valuation the company received in its most recent tender offer. It is speculated that Starlink is preparing for an IPO, although the timing remains uncertain. Recent reports suggest that SpaceX's Starship is gearing up for its fourth launch.

Competition in the Space Race

In covering SpaceX, questions often arise about where Musk's competitors, such as Bezos and United Launch Alliance, stand. It seems that SpaceX is outpacing the competition on Earth.

What are your thoughts?

This news certainly provides food for thought. What are your thoughts on SpaceX's potential $200 billion valuation and the implications for the space industry? Feel free to share this article with your friends and discuss. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.