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SpaceX Plans to Spin Off Starlink, Offer IPO

SpaceX Launch

Bloomberg is reporting Elon Musk’s SpaceX plans to spin off Starlink in an effort to help shake up the internet industry.

SpaceX has already launched 240 of its Starlink satellites into space, and is moving forward in batches of 60 at a time. Once complete, the Starlink satellite network will provide high-speed internet access globally, beginning this summer. As Bloomberg points out, currently Starlink only covers higher latitudes, but expects to cover the entire globe by the end of the year.

At a private investor event, SpaceX President Gwynne Shotwell indicated the company is ready to take the next step.

“Right now, we are a private company, but Starlink is the right kind of business that we can go ahead and take public,” said Shotwell. “That particular piece is an element of the business that we are likely to spin out and go public.”

Investors will likely welcome the move, especially given the company’s potential.

“This is going to turn SpaceX into a company that is providing service to consumers, which we are excited about,” Shotwell said, while also saying the internet service will be “less than what you are paying now for about five to 10 times the speed you are getting.”

nIf SpaceX is able to deliver on Shotwell’s promise, an independent Starlink could be game-changer, in terms of providing affordable, high-speed internet to underserved markets.