8 months ago

SpaceX May Go Public via EchoStar Merger

SpaceX May Go Public via EchoStar Merger
SpaceX could go public by merging with EchoStar. It isn’t a crazy idea. · livemint.com

SpaceX, the company that makes rockets and internet satellites, might become a public company by merging with EchoStar, a company that provides TV and internet services.

This is different from the usual way companies go public, called an IPO.

SpaceX's leader, Elon Musk, is known for doing things differently, and this idea could have some benefits.

SpaceX and EchoStar have already done business together, and EchoStar now owns a small part of SpaceX.

A merger could help SpaceX raise a lot of money and grow its satellite internet service, called Starlink.

It could also be a good exit strategy for EchoStar's leader, Charlie Ergen.

The merger could be tax-free and might allow SpaceX to share its future plans with investors, which could help it get a higher value.

While it's an unusual idea, it could make sense for both companies.

Key facts

SpaceX Valuation
$400 billion (current), potentially $1 trillion in public market
EchoStar Market Value
$30 billion
SpaceX Revenue Projection
$15 billion in 2025, $22 billion in 2026
EchoStar Stock Increase
50% since first SpaceX transaction
EchoStar's SpaceX Stake
2%-plus of SpaceX equity
Potential Merger Benefits
Tax-free combination, quicker public listing, more financial projections
EchoStar's Cash Position
$24 billion after recent deals
EchoStar's Debt
$13 billion after recent deals

Quotes

Charlie Ergen

Co-founder, Chairman, and controlling shareholder of EchoStar

“SpaceX is the 'best vendor' in space.”
livemint.com

Robert Willens

New York tax expert

“Such a merger 'makes a lot of sense'.”
livemint.com

Gregory Williams

TD Cowen analyst with a Buy rating on EchoStar

“The company's plans now are 'vague'.”
livemint.com

Sources

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