Elon Musk’s SpaceX is targeting a $150 billion valuation in a second round of employee stock sales, underscoring the company’s success.
SpaceX has reached an agreement to sell a block of Insider stock to a group of new and existing investors at a price of $81 per share, the Wall Street Journal reported Thursday.
That’s an increase of 5 percent from the company’s last takeover bid in December at a price of $77, when the company was valued at approximately $140 billion.
Founded in 2002 by Musk, SpaceX is still privately held, but regularly conducts secondary sales to provide employees with an opportunity to cash out shares granted as part of their compensation packages.
SpaceX doesn’t announce financial results but appears to be thriving as the world’s busiest rocket launcher, handling deals with commercial satellite operators, NASA and other government entities.
Elon Musk’s SpaceX is targeting a valuation of $150 billion in a second round of employee stock sales, up 5 percent from the previous valuation
SpaceX has reached an agreement to sell $750 million in insider stock to a group of new and existing investors at a price of $81 per share
Starlink, the company’s satellite communications service, was also a revenue driver, signing deals with telcos around the world to provide broadband and cellular coverage.
Starlink has built a fast-growing network of more than 3,500 low-Earth orbiting satellites that can provide connectivity in remote areas.
According to Bloomberg, SpaceX is initially targeting a takeover bid totaling $750 million for its recent secondary sale.
The company is said to be raising no new capital through the stock sale, instead limiting itself to existing stock held by insiders. A $150 billion valuation would make SpaceX one of the most valuable private companies in the world.
SpaceX did not immediately respond to a request for comment from Thursday night.
According to the Wall Street Journal, Musk owned a 42 percent stake in SpaceX late last year but retained control of the company with nearly 80 percent of shareholder voting rights.
While the value of his SpaceX shares has steadily increased for the billionaire, Twitter’s story has been different since he bought the company for $44 billion in October.
In May, Fidelity lowered the internal valuation of its own stake in Twitter, giving the social media company an implied valuation of $15 billion — about a third of Musk’s purchase price.
Fidelity lowered the internal valuation of its own stake in Twitter, giving the social media company an implied valuation of $15 billion — about a third of Musk’s purchase price
Twitter is also under renewed pressure from Facebook owner Meta, which launched rival service Threads last week and quickly gained more than 100 million users
It’s not clear how Fidelity arrived at its valuation numbers, but as a publicly traded company, it has a duty to provide investors with up-to-date information about its holdings.
In an interview earlier this year, Musk himself admitted that the timing of his Twitter purchase was “bad.”
Musk told former Fox News host Tucker Carlson, “It remains to be seen if that was financially wise — it isn’t currently.”
Musk’s tenure as Twitter owner has been chaotic, marked by mass layoffs, departures of top executives, and rapid changes in key roles.
By Musk’s own account, many advertisers have pulled out of Twitter, even though the mogul has said he wants to transition the service more toward subscription-based revenue.
Twitter is also under renewed pressure from Facebook owner Meta, which launched rival service Threads last week and quickly gained more than 100 million users.
Tesla’s shares are up 157 percent year-to-date, giving the electric carmaker a market valuation of $871 billion
Because Twitter is a private company officially known as X Holdings, information about its finances cannot be independently verified.
On a positive note for Musk, Tesla stock has been booming this year amid a broad rally by big tech companies.
Tesla’s shares are up 157 percent year-to-date, giving the electric carmaker a market valuation of $871 billion.
Musk remains Tesla’s largest single shareholder with a roughly 13 percent stake, even after paying out billions to fund his Twitter acquisition.