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SpaceX files to go public, paving way for record stock offering
manilatimes1d ago

SpaceX files to go public, paving way for record stock offering

ELON Musk’s SpaceX has filed papers with US regulators that set the stage for what could be the largest-ever public stock offering, a source familiar with the matter told Agence France-Presse (AFP) on Wednesday. The confidential filing puts the rocket and satellite builder on track to list its shares on a public exchange by July, according to The Wall Street Journal, citing unidentified sources. Media reports have said the initial public offering (IPO) could be valued at a whopping $75 billion or more, for a venture with stratospheric ambitions. The IPO looks set to blow past a record from 2019, when the oil group Saudi Aramco raised $25.6 billion. If successful, SpaceX could arrive on Wall Street with a valuation exceeding $1.75 trillion, putting it among the world’s 10 biggest companies by market capitalization. After its acquisition of xAI in early February, SpaceX was valued at $1.25 trillion. Analysts have said that taking SpaceX public will require it and Musk to maintain greater transparency, particularly about its revenues. It could also expose the company to investor pressure to focus on profits instead of long-term investments ― such as Musk’s plan to build a rocket for sending people to Mars. ‘Enamored’ investors When the documents are released, SpaceX’s IPO filing will likely reveal details about its operations, including its satellite and rocket manufacturing, alongside its xAI artificial intelligence arm. Given that investors appear “enamored” with Musk’s space and artificial intelligence ambitions, SpaceX could “probably get away with listing in a less exuberant market than some other companies might,” said Steve Sosnick of Interactive Brokers. Matthew Kennedy, a senior strategist at Renaissance Capital, said he had little worries that SpaceX would be able to raise such a massive amount of capital, even as markets are roiled by the ongoing war in the Middle East. “US markets are some of the largest, most robust fundraising in the world, and this is a unique company that has captured the imagination of a lot of investors,” Kennedy said. He also noted investor enthusiasm in potential advancements on space exploration and in artificial intelligence (AI), alongside the cash to be made in the telecoms sector. Besides SpaceX, two other tech heavyweights, the AI developers OpenAI and Anthropic, are reportedly planning IPOs this year. SpaceX, which dominates the space launching market with its reusable rockets, is owned by Musk alongside several investment funds and tech companies including Google’s parent Alphabet. The company’s rockets vastly reduce the cost of putting satellites into orbit. SpaceX is also the owner of the Starlink satellite constellation. In February, Musk announced that SpaceX would take over his artificial intelligence outfit xAI, a step in the billionaire’s plan to use SpaceX’s rockets to launch solar-powered, satellite-based data centers to run future AI models.

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manilatimes1d ago

Amazon in talks to buy $9 billion satellite group Globalstar

AMAZON is in talks to buy satellite telecom group Globalstar as it ramps up efforts to build its own low-earth-orbit satellite business to rival SpaceX's Starlink, the Financial Times reported on Wednesday, citing people familiar with the matter. Globalstar's shares, which have more than doubled in market value over the past year, surged 24 percent to $85 in extended trading following the report. The company had a market cap of $8.81 billion as of last close. Covington, Louisiana-headquartered Globalstar is known for its low-earth-orbit communication satellites and offers voice, data and asset-tracking services across enterprise, government and consumer markets. Amazon and Globalstar were still negotiating some of the complexities of a potential deal after lengthy talks, according to the report. One complicating factor has been Apple's ownership of a 20 percent stake in Globalstar, necessitating negotiations between Amazon and Apple, the report said. Amazon's reported deal an effort to rival Starlink The reported deal comes as Amazon deploys Leo, formerly known as Project Kuiper, involving 3,200 satellites. Amazon's network would be the closest rival to Elon Musk's Starlink, which operates a network of more than 9,500 satellites. Starlink services more than nine million users globally, and generates 50 percent-80 percent of SpaceX's revenue. Its services span individual consumers, businesses and governments, including US national security agencies through its Starshield variant. Amazon's Leo, with 180 satellites in orbit so far, is targeting similar customers. Meanwhile, SpaceX has confidentially filed for a US initial public offering, two people familiar with the matter told Reuters earlier in the day, setting the stage for what could become the largest stock market listing on record. Analysts estimate that much of SpaceX's potential $1.75 trillion potential valuation would be driven by its Starlink satellite business.

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