SpaceX valuation surges near $180Bn in fresh tender offer: Bloomberg

SpaceX, spearheaded by Elon Musk, has undertaken a strategic adjustment in its tender offer share price. The space company is now set to sell insider shares at $97 apiece – a move that is poised to elevate the company’s valuation to approximately $180 billion, reports Bloomberg.

Of particular significance is the adjustment in the share price, which has risen from the previously considered $95 to the current valuation of $97. The tender offer, a deliberate financial strategy employed by closely held companies, is not merely a transactional event but a nuanced move to unlock value for insiders. SpaceX, as the second-most valuable closely held startup globally, had earlier initiated discussions on a tender offer ranging between $500 million to $750 million in its bid to facilitate liquidity for employees in anticipation of an eventual initial public offering (IPO).

As the fiscal year concludes, SpaceX is poised to achieve revenues of approximately $9 billion across its rocket launch and Starlink businesses. Future projections indicate a significant surge, with sales expected to reach around $15 billion by 2024. Notably, SpaceX is actively exploring the prospect of an initial public offering (IPO) for Starlink, potentially entering the market by late 2024.

Situated in Hawthorne, California, SpaceX has emerged as a formidable player in the commercial space industry, boasting an exceptional record of over 90 successful launches in the year 2023. This unparalleled achievement, predominantly driven by the Falcon 9 and Falcon Heavy rockets, has solidified SpaceX’s status as a leader in the U.S. commercial launch sector. In fact, analysts assert that SpaceX’s Falcon 9 has effectively established a de-facto monopoly in the commercial launch market. The Falcon 9 has successfully positioned SpaceX as the preferred choice for a myriad of commercial satellite launches and contributed significantly to its market dominance. SpaceX has also collaborated with the likes of NASA, and currently holds a substantial multibillion-dollar contract with NASA, tasked with developing the Starship rocket (which is designated as a lunar lander).

Beyond its prowess in rocket launches, SpaceX also runs one of its kind satellite internet service, Starlink. Boasting a constellation of over 5,000 satellites in low-Earth orbit, Starlink has aggressively moved forward with deployment of many more micro-satellites, despite resistance and critical opinion on its satellites. With a user base surpassing 2 million in the current year, the initiative stands as a disruptive force in the space-based internet sector.