According to CNBC, Elon Musk’s private space exploration company, SpaceX, has surpassed a $100 billion valuation based on a secret agreement between new and existing investors. This marks a tremendous increase in value matched by only one other private company in the world.
CNBC reported Friday that SpaceX insiders had reached an agreement to sell up to $755 million in private stock for $560 per share, citing anonymous persons familiar with the transaction.
The deal offers a 33 percent premium above February fundraising round prices of $419.99, implying a firm valuation of $100.3 billion. With the transaction, the Hawthorne, Calif.-based company get said to have raised no additional funding.
In February, SpaceX closed an $850 million funding round to help fund its ambitious Starlink and Starship projects, valuing the company at $74 billion at the time. According to Forbes’ estimations, Musk, the world’s richest person with a net worth of $201.5 billion, controlled nearly 48 percent of SpaceX before its recent funding round. Forbes reached out to SpaceX for comment, but they did not answer right away.
SpaceX is a private company that produces and launches rockets into space. It was founded in 2002 and accomplished its first commercial mission for a private customer in 2013.
Morgan Stanley analysts predicted the company’s value might reach $100 billion in a report last year, citing the company’s “continuing momentum in gaining government contracts,” particularly from the National Aeronautics and Space Administration and the US Department of Defense.
On September 15, billionaire Jared Isaacman rented a SpaceX rocket to take him to the edge of space in the first-ever orbital voyage without any professional crew.
Musk has hinted that SpaceX’s Starlink project, a satellite broadband Internet service, will be spun off and sold to the public. “We will most likely list Starlink on the stock exchange, but only after several years of steady and predictable revenue growth,” says the CEO.
Last year, he took to Twitter to express his thoughts by saying “The stock market *hates* unpredictable cash flow. Small retail investors are a favorite of mine. They will get given high consideration. You’ll be able to rely on me.”
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