Tech analyst firm CCS Insight said in a report that Starlink could be spun off into a publicly traded company.
The Starlink company is part of Musk's space exploration company.
An annual report of predictions is released by CCS Insight. As Starlink's revenue becomes more predictable and it gains more and more users, the company is spun off to raise capital to expand its constellation of satellites, according to the analyst firm.
Ben Wood, chief of research at CCS Insight, said in an interview that it makes sense. It's going to take a lot of investment by Starlink.
Wood said an IPO will help drive investment into the company, push international expansion, and make Starlink the go-to player for satellite broadband.
Over the last few years, executives from the company have talked about an IPO. When revenue becomes more predictable, Musk will take Starlink public.
CNBC reported that Musk told employees at an all-hands meeting that an IPO of Starlink was not likely until at least 25 years from now.
CNBC obtained an email from Musk that said he was targeting an offering this year. It will probably make sense to take Starlink public in about three years.
The spotlight has been on Starlink because of its involvement in the war in Russia. Even though communication infrastructure gets destroyed during the war against Russia, the country's military is still online thanks to the donation of Starlink internet terminals by the company.
Musk said Friday that the cost of the Starlink terminal in Ukraine made it impossible for them to continue funding it. Even though Starlink is still losing money, Musk said Saturday that he would keep funding the Ukrainian government.
Michael Sheetz was a contributor.
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