Latest news with #satellite internet
Yahoo
2 days ago
- Business
- Yahoo
Will Starlink IPO Before SpaceX? What Investors Should Know.
Key Points Starlink operates as a subsidiary of SpaceX, and specializes in satellite internet services. There are multiple ways that SpaceX could take Starlink public while still maintaining majority control of the business. Industry estimates suggest that Starlink is SpaceX's largest source of revenue and is generating positive free cash flow, making now an interesting time to consider an IPO. These 10 stocks could mint the next wave of millionaires › Be it in investing or life in general, people often want things that they can't have. When it comes to stocks, it's not uncommon for investors -- particularly retail investors -- to fawn over the prospects of owning equity in high-profile start-ups. Unfortunately, these types of investments are generally reserved for venture capital (VC) firms, private equity funds, or accredited investors. One of the most popular start-ups in the world is Tesla CEO Elon Musk's space exploration company, SpaceX. As of this writing, industry research suggests that SpaceX is the most valuable private technology company in the world -- having achieved a valuation of $350 billion earlier this year. In addition to rocket ships, SpaceX also provides satellite internet services through a subsidiary business, called Starlink. Over the last few years, Starlink's popularity has fueled speculation that it could potentially go public. But seeing as how Starlink operates within the broader SpaceX orbit, how would such a transaction even work? Let's dig into the mechanics around a potential Starlink initial public offering (IPO) and assess how and why such a deal could benefit SpaceX. SpaceX, Starlink, and retail investors: It's a complicated situation A concept that retail investors may not fully understand is that when you invest in a business -- especially one that is diversified -- you effectively gain a form of ownership in the various segments of the company. For example, if you're interested in autonomous vehicles and want to invest in Waymo, the easiest way to do that is by owning Alphabet stock. Waymo is a subsidiary of Alphabet, and so owning the stock provides investors with exposure to the company's entire ecosystem including Google, YouTube, Google Cloud, Waymo, and much more. Along the same lines, if SpaceX were to go public, investors would be able to buy stock through their brokerage account and have an ownership stake to the entire business (including exposure to Starlink). But what would a situation look like that features a completely separate initial public offering for Starlink? There are multiple different ways that SpaceX could structure such a deal. One option could be for SpaceX to partially spin off Starlink as its own legal entity and subsequently offer a certain percentage of the business through an IPO. Perhaps a more interesting structure would be for SpaceX to create a tracking stock just for the Starlink division. In such an event, investors could buy shares in stock that only tracks the performance of Starlink as opposed to the entire SpaceX operation. The broader point here is that taking Starlink public before SpaceX is entirely doable... but it's also complicated and requires some creative thinking as it pertains to deal structure. Taking this one step further, what would SpaceX's motivation be for taking Starlink public? Does a Starlink IPO even make sense for SpaceX? One benefit of taking Starlink public is that it would provide investors with some autonomy regarding how they want to allocate capital. In other words, by listing Starlink and SpaceX as separate public entities, investors have a choice over buying exposure into a lumpy aerospace and defense business (SpaceX) or a subscription-based, recurring revenue internet services company (Starlink). As a private company, SpaceX is not required to disclose its financial profile. With that said, sending rocket ships to space is a complex, time-consuming ambition. Moreover, space exploration is not exactly a linear type of business. What I mean by all of this is that SpaceX's core business doesn't necessarily have predictable revenue streams, but it requires hefty investments across research and development (R&D) and capital expenditures (capex) on an ongoing basis. According to a report published by Payload Space earlier this year, Starlink is believed to be the largest source of revenue within the entire SpaceX business. In addition, it's also suggested that the overwhelming majority of Starlink's revenue stems from recurring subscription services. With that in mind, Starlink's actual profitability profile is not entirely known. Reporting from Bloomberg has suggested that Starlink's profitability profile is not robust given the high costs of building and launching satellites. But on the other side of the equation, some would argue that Starlink's internet subscriptions help offset the maintenance costs affiliated with low-margin satellites. While the company's precise financial picture independent of SpaceX is not entirely known, I remain optimistic that a Starlink IPO would be well received. A Starlink IPO could represent a capital infusion for SpaceX while still allowing the company to retain control of Starlink from an ownership and governance perspective. In other words, SpaceX can leverage proceeds from a Starlink IPO to reinvest in the core space exploration business. This would permit for more aggressive investments in the core rocket business, ultimately helping SpaceX intensify the competitive landscape with the likes of Blue Origin or Rocket Lab. Given Starlink's reported explosive growth and SpaceX's ability to maintain control over the satellite business, I think Musk should seriously consider taking Starlink public sooner rather than later. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $449,961!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,603!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $636,628!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of July 21, 2025 Adam Spatacco has positions in Alphabet and Tesla. The Motley Fool has positions in and recommends Alphabet, Rocket Lab, and Tesla. The Motley Fool has a disclosure policy. Will Starlink IPO Before SpaceX? What Investors Should Know. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
2 days ago
- Business
- Globe and Mail
Will Starlink IPO Before SpaceX? What Investors Should Know.
Key Points Starlink operates as a subsidiary of SpaceX, and specializes in satellite internet services. There are multiple ways that SpaceX could take Starlink public while still maintaining majority control of the business. Industry estimates suggest that Starlink is SpaceX's largest source of revenue and is generating positive free cash flow, making now an interesting time to consider an IPO. These 10 stocks could mint the next wave of millionaires › Be it in investing or life in general, people often want things that they can't have. When it comes to stocks, it's not uncommon for investors -- particularly retail investors -- to fawn over the prospects of owning equity in high-profile start-ups. Unfortunately, these types of investments are generally reserved for venture capital (VC) firms, private equity funds, or accredited investors. One of the most popular start-ups in the world is Tesla CEO Elon Musk's space exploration company, SpaceX. As of this writing, industry research suggests that SpaceX is the most valuable private technology company in the world -- having achieved a valuation of $350 billion earlier this year. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » In addition to rocket ships, SpaceX also provides satellite internet services through a subsidiary business, called Starlink. Over the last few years, Starlink's popularity has fueled speculation that it could potentially go public. But seeing as how Starlink operates within the broader SpaceX orbit, how would such a transaction even work? Let's dig into the mechanics around a potential Starlink initial public offering (IPO) and assess how and why such a deal could benefit SpaceX. SpaceX, Starlink, and retail investors: It's a complicated situation A concept that retail investors may not fully understand is that when you invest in a business -- especially one that is diversified -- you effectively gain a form of ownership in the various segments of the company. For example, if you're interested in autonomous vehicles and want to invest in Waymo, the easiest way to do that is by owning Alphabet stock. Waymo is a subsidiary of Alphabet, and so owning the stock provides investors with exposure to the company's entire ecosystem including Google, YouTube, Google Cloud, Waymo, and much more. Along the same lines, if SpaceX were to go public, investors would be able to buy stock through their brokerage account and have an ownership stake to the entire business (including exposure to Starlink). But what would a situation look like that features a completely separate initial public offering for Starlink? There are multiple different ways that SpaceX could structure such a deal. One option could be for SpaceX to partially spin off Starlink as its own legal entity and subsequently offer a certain percentage of the business through an IPO. Perhaps a more interesting structure would be for SpaceX to create a tracking stock just for the Starlink division. In such an event, investors could buy shares in stock that only tracks the performance of Starlink as opposed to the entire SpaceX operation. The broader point here is that taking Starlink public before SpaceX is entirely doable... but it's also complicated and requires some creative thinking as it pertains to deal structure. Taking this one step further, what would SpaceX's motivation be for taking Starlink public? Does a Starlink IPO even make sense for SpaceX? One benefit of taking Starlink public is that it would provide investors with some autonomy regarding how they want to allocate capital. In other words, by listing Starlink and SpaceX as separate public entities, investors have a choice over buying exposure into a lumpy aerospace and defense business (SpaceX) or a subscription-based, recurring revenue internet services company (Starlink). As a private company, SpaceX is not required to disclose its financial profile. With that said, sending rocket ships to space is a complex, time-consuming ambition. Moreover, space exploration is not exactly a linear type of business. What I mean by all of this is that SpaceX's core business doesn't necessarily have predictable revenue streams, but it requires hefty investments across research and development (R&D) and capital expenditures (capex) on an ongoing basis. According to a report published by Payload Space earlier this year, Starlink is believed to be the largest source of revenue within the entire SpaceX business. In addition, it's also suggested that the overwhelming majority of Starlink's revenue stems from recurring subscription services. With that in mind, Starlink's actual profitability profile is not entirely known. Reporting from Bloomberg has suggested that Starlink's profitability profile is not robust given the high costs of building and launching satellites. But on the other side of the equation, some would argue that Starlink's internet subscriptions help offset the maintenance costs affiliated with low-margin satellites. While the company's precise financial picture independent of SpaceX is not entirely known, I remain optimistic that a Starlink IPO would be well received. A Starlink IPO could represent a capital infusion for SpaceX while still allowing the company to retain control of Starlink from an ownership and governance perspective. In other words, SpaceX can leverage proceeds from a Starlink IPO to reinvest in the core space exploration business. This would permit for more aggressive investments in the core rocket business, ultimately helping SpaceX intensify the competitive landscape with the likes of Blue Origin or Rocket Lab. Given Starlink's reported explosive growth and SpaceX's ability to maintain control over the satellite business, I think Musk should seriously consider taking Starlink public sooner rather than later. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $449,961!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,603!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $636,628!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of July 21, 2025
RNZ News
5 days ago
- Business
- RNZ News
SpaceX seeks cause of Starlink's global satellite network outage
Starlink is a satellite internet provider. Photo: 123RF SpaceX's Starlink satellite network was back up and running on Friday (local time) as engineers hunted for the root cause of one of its biggest international outages the night before, a rare disruption for the powerful internet system set off by an internal software failure. Users in the US and Europe began experiencing the outage at around 3pm EDT Thursday (7am NZST Friday), according to Downdetector, a crowdsourced outage tracker that said as many as 61,000 user reports to the site were made. In Ukraine, where troops rely heavily on Starlink for battlefield communications, the outage affected combat operations as service was "down across the entire front", said Robert Brovdi, the commander of Ukraine's drone forces. Starlink, active in roughly 140 countries and territories and used by a growing number of militaries and government agencies, is a key source of revenue for Elon Musk's SpaceX. The network has grown rapidly since 2020 into a disruptive force in the satellite communications industry. Starlink acknowledged the outage on its X account on Thursday and said "we are actively implementing a solution." The service mostly resumed after two and a half hours, Michael Nicolls, SpaceX vice president of Starlink Engineering, wrote on X. By 8pm, the company wrote on X that the "network issue has been resolved, and Starlink service has been restored". "The outage was due to failure of key internal software services that operate the core network," Nicolls said, apologising for the disruption and vowing to find its cause. Musk also apologised: "Sorry for the outage. SpaceX will remedy root cause to ensure it doesn't happen again," the SpaceX chief executive wrote on X. The outage was a rare hiccup for SpaceX's most commercially sensitive business. Experts speculated whether the service, known for its resilience and speedy development, was beset by a glitch, a botched software update or perhaps a cyberattack. Doug Madory, an expert at the internet analysis firm Kentik, said such a sweeping global outage was unusual. "This is likely the longest outage ever for Starlink, at least while it became a major service provider," Madory said. As Starlink amasses more than 6 million users, SpaceX has focused in recent months on updating its network to accommodate demands for higher speed and bandwidth. The company, in a partnership with T-Mobile, is also expanding the constellation with larger, more powerful satellites to offer direct-to-cell text messaging services, a line of business in which mobile phone users can send emergency text messages through the network in rural areas. SpaceX has launched more than 8000 Starlink satellites since 2020, building a uniquely distributed network in low-Earth orbit that has attracted intense demand from militaries, transportation industries and consumers in rural areas with poor access to traditional, fiber-based internet. "I'd speculate this is a bad software update, not entirely dissimilar to the CrowdStrike mess with Windows last year, or a cyberattack," said Gregory Falco, director of a space and cybersecurity laboratory at Cornell University. An update to CrowdStrike's widely used cybersecurity software led to worldwide flight cancellations and impacted industries around the globe in July last year. The outage disrupted internet services, affecting 8.5 million Microsoft Windows devices. It was unclear whether Thursday's outage affected SpaceX's other satellite-based services that rely on the Starlink network. Starshield, the company's military satellite business unit, has billions of dollars' worth of contracts with the Pentagon and US intelligence agencies. Separately, Reuters reported on Friday that Musk ordered a partial shutdown of Starlink during a pivotal push by Ukraine to retake territory in its war with Russia in late September 2022. - Reuters
The Standard
5 days ago
- The Standard
Ukraine says Starlink's global outage hit its military communications
A Starlink satellite internet system is set up, amid Russia's attack on Ukraine, near the frontline town of Pokrovsk in Donetsk region, Ukraine April 10, 2025. REUTERS/Inna Varenytsia/File Photo
CNET
21-07-2025
- Business
- CNET
Starlink Got Faster In the Past Two Years. It's Still Not Regularly Meeting Broadband Speeds
Starlink is nearly twice as fast as it was two years ago, according to a new report from the speed test site Ookla. (Disclosure: Ookla is owned by the same parent company as CNET, Ziff Davis.) Median download speeds from the satellite internet provider have steadily ticked up over the past few years, going from 53.95 megabits per second in 2022 to 104.71Mbps today. That's an impressive feat considering Starlink added about 5 million customers over the same period and recently passed the 6 million mark globally. However, according to Ookla's data, only 17.4% of Starlink customers are getting internet speeds that meet the FCC's definition of minimum broadband speeds: 100Mbps download and 20Mbps upload. Ookla "The fact that Starlink's median download speeds nearly doubled from Q3 2022 until Q1 2025 is definitely a notable and impressive development," Sue Marek, editorial director at Ookla, told CNET. "It indicates that their ongoing efforts to expand their satellite constellation's capacity is making a difference." Starlink accomplished that by drastically increasing its capacity. At the beginning of 2022, the company had about 1,761 satellites in orbit; today, that number stands at 7,607, according to Jonathan McDowell, an astronomer who maintains a catalog of space objects. SpaceX, the company that owns Starlink, has said it eventually hopes to have as many as 42,000 satellites in space. It's going to need them. Recent changes to the Broadband Equity, Access and Deployment Program could funnel as much as $20 billion in government subsidies to Starlink for providing internet in rural areas. But many industry experts are skeptical that Starlink can add millions of new customers without sacrificing speed. Locating local internet providers That's a reasonable concern. While most subscribers are meeting the 100Mbps download speed threshold, Starlink's median upload speeds are just 14.84Mbps, falling short of the FCC's broadband definition, which ISPs must meet to receive BEAD money. Latency, or the time it takes data to get from your computer to where it's going, is also on the high side -- 45 milliseconds (ms) compared to 12ms for the country as a whole; CNET recommends around 50ms or lower for activities like online gaming. In October 2024, Maine began offering free Starlink dishes to residents in its 'hardest-to-reach locations.' I asked Brian Allenby, the senior director with the Maine Connectivity Authority, if he was concerned about Starlink hitting that 100/20Mbps benchmark in a previous interview. "We have a very granular level of reporting through the Starlink portal, and it has all been compliant," Allenby said. "So we don't have immediate concerns about that." A representative for Starlink didn't immediately respond to a request for comment. States that qualify for a free Starlink dish had higher speeds The Starlink experience can vary dramatically depending on where you live. Last week, the company instituted a "demand fee" of $500 in the Pacific Northwest to combat congestion in high-use areas. In other states with more capacity available, it's giving customers the $349 satellite dish for free. Ookla took a look at the areas where Starlink is offering free equipment and found that all of them, except West Texas and Alaska, had median download speeds over 100Mbps. South Dakota, Rhode Island and Wyoming had the highest percentage of customers meeting the 100/20Mbps benchmark, while Alaska, Mississippi and Louisiana had the lowest.
