A former Facebook Inc. executive is predicting that Starlink will go public years earlier than planned.
A Starlink IPO could give Musk more financial flexibility and would be an obvious outcome in 2023, according to Palihapitiya.
The comments came on the episode of the podcast where he and his two co- hosts, investors, predict trends and events in the technology industry in the year ahead.
The dangers of margin loans and difficulties with them were discussed by Musk on our Pod. He will create space for himself. The easiest way for him to do it is this. He will get a lot of more dry powder.
He didn't know if he had information about specific plans from Space Exploration Technologies Corp. Both co-hosts Calacanis and Sacks have been involved in Musk's companies.
Musk and Shotwell have made comments in the past about the Starlink initiative eventually breaking off from the rest of the company and going public. After the launch of a couple hundred Starlink satellites, Shotwell said that the unit was the right kind of business that could be taken public. Shortly after her comments, Musk said that he didn't think about a Starlink IPO.
He said that they needed to make the thing work.
The Starlink IPO was at least three to four years away according to Musk.
It might not be the best time to offer a public offering. Concerns about a slowing economy limited IPOs in 2022, and rising interest rates and a possible US recession are drags on the market.
Over the past three years, Palihapitiya has taken startups public through special purpose acquisition companies and blank check firms. He was unofficially crowned the "SPAC King" because of his promotion of these investments.
He is an investor in two companies.
Many of Palihapitiya's investments have lost value since they were taken public. The online bank has fallen. Virgin Galactic's stock price has fallen. In September, two of his blank check companies closed.
Requests for comment were not responded to.
In order to provide global low-latency broadband internet service to the ground below, thousands of satellites need to be launched into low orbits above Earth. The company has more than 3,300 satellites in the air. The US Federal Communications Commission gave the go-ahead for an additional 7,500 satellites to be launched by the company.
Lizette Chapman helped with the project.