SpaceX will sell insider shares at $112 apiece in a tender offer, a higher-than-expected price that boosts the value of Elon Musk's space and satellite company closer to $210 billion
Elon Musk's SpaceX will sell insider shares in a tender offer that values the private space company at over $200 billion, according to a report.
Citing people familiar with the matter, Bloomberg reported that SpaceX will sell insider shares at $112 apiece, valuing the company at close to $210 billion.
SpaceX did not immediately respond to a request for comment. Late last year, Bloomberg reported another tender offer that valued SpaceX at around $180 billion. Last month, SpaceX founder and Chief Executive Elon Musk dismissed a report that SpaceX was considering selling existing shares.
Alphabet Inc.-owned Google (GOOG) (GOOGL) and fund manager Fidelity are among SpaceX's investors, alongside others such as billionaire investor Ron Baron.
Fortuna Investments CEO Justus Parmar, whose venture-capital firm is an investor in SpaceX and other space companies, told MarketWatch he believes two primary factors are boosting SpaceX's valuation.
For one, the company's Starlink satellite-internet constellation is poised to grow its network from regional to global relatively quickly, thanks to an international push from Musk over the past year, he explained. "With billions of new customers across the globe, along with new initiatives like smaller mobile satellites, it's looking like a surefire revenue driver," Parmar said in an email.
Parmar also thinks that SpaceX's Starship spacecraft and launch rocket will be a game changer. "Once it's fully functional, it will allow the cadence of deliveries to increase exponentially, but also allow heavier, bigger payloads to launch into space," he said. "And it likely isn't even being factored fully into today's record-breaking valuation."
The Fortuna Investments CEO thinks that, with $9 billion in revenue last year and Starlink and Starship poised to grow the company further, there is potential for SpaceX to become a $1 trillion to $2 trillion company.