Don't Have Stable Funds Yet, Starlink Service Won't Go Public

Starlink services to remote parts of the world. (X @Starlink)

JAKARTA Starlink is a potential project owned by SpaceX. Although the business opportunity is quite large, SpaceX Chief Executive Elon Musk does not want to separate Starlink's business from the company.

While attending an online discussion on the Spaces platform X, Musk said that his company would not separate Starlink's business. He also said that Starlink would not conduct Initial Public Offering (IPO).

Musk said that SpaceX and Starlink still do not have stable funding. Looking at the cash flow that cannot be predicted properly, making Go Public or IPO company shares not a good plan.

In my opinion, there is no point in going public until you have a very stable and predictable revenue stream. If your cash flow is very stable and predictable, then going public is no longer a problem," Musk said, quoted from Spacenews' report.

Musk also explained that the company's burden would be even greater when its share offerings became public. Companies will be required to operate properly so that their performance will be disrupted due to public interference.

There is a huge pressure on public companies not to experience a bad quarterly. This can result in less efficient operations because you will try hard at the end of the quarter not to disappoint others. That's what happens.

In fact, this is not the first time Musk has rejected Starlink's plan to separate Go Public. Since 2020, Musk has said that his company has never thought of Starlink's IPO plans, for whatever reason.

Meanwhile, last June, Musk said he would not talk about Starlink's IPO. According to him, discussing specific matters related to public offerings is part of a regulatory violation.