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21 Oct 2022
Analysts Expect Elon Musk's SpaceX to Spin-off Starlink as a Public Company by 2025
A report by tech analyst firm CCS Insight predicts Elon Musk will spin off Starlink from SpaceX by 2025.
As part of Musk's space exploration, Starlink provides broadband internet via satellite.
Each year, CCS Insight publishes a prediction report for the tech sector.
The firm's report, published Tuesday, Starlink's "revenue becomes more predictable, and the company gains more and more users, a spinoff is proposed to raise capital for expanding its constellation of satellites."
"We think it makes perfect sense," and Starlink will need to invest heavily." So said Ben Wood, chief of research at CCS Insight.
Wood claims that going public will help SpaceX expand internationally, support Starlink's popularity and make the product the best for satellite broadband.
In addition to boosting investment in SpaceX, an IPO will open doors to international expansion and "make Starlink the go-to player for satellite broadband.
Recently, Starlink has gained attention because of its role in the Russia-Ukraine war. SpaceX has donated Starlink terminals to Ukraine to keep its military- connected while communication infrastructure is destroyed.
But Musk said on Friday that SpaceX could not keep spending to build Starlink terminals in Ukraine indefinitely in the light of their costs, although he is also CEO of the Tesla electric car company.
According to Saturday's statement, SpaceX will keep funding the Ukrainian government, even though Starlink is still losing money.
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