Tesla CEO Elon Musk recently broke a world record for the largest loss of a personal fortune in history, having shed an estimated $182 billion since November 2021 (another estimate puts it closer to $200 billion). But he could enjoy a major turnaround this year, according to Silicon Valley insiders, and it would be thanks to one of his other companies, SpaceX.
These insiders are two prominent Bay Area venture capitalists, Jason Calacanis and Chamath Palihapitiya, who once garnered the nickname “SPAC King” for his numerous investments in special purpose acquisition companies. Both longtime Musk associates, they were speaking on the All-In podcast about the outlook for 2023. Calacanis’s closeness to Musk was revealed in court, when his private text messages to the Twitter CEO were disclosed as part of the Twitter acquisition lawsuit, including his oath of fealty: “Board member, adviser, whatever…you have my sword. Put me in the game coach! Twitter CEO is my dream job.” So they are likely biased in favor of Musk, but they see one clear way the world’s second-richest man can recover some swagger in 2023.
Asked what would be the biggest business deal of the year, Palihapitiya said on the podcast, “This one is easy. Starlink will go public.”
Starlink is the satellite-broadband unit of SpaceX, which dominates the market for commercial space launch. It gained attention last year due to the war in Ukraine, where its user terminals proved crucial to resisting Russia’s invasion, helping troops stay in touch with each other and leaders in Kyiv despite attacks on infrastructure.
The Starlink valuation “will be at least half of SpaceX’s current private worth,” Palihapitiya predicted.
That would put it at roughly $75 billion, host Calacanis noted. In mid-November, Bloomberg reported that SpaceX was in funding talks that would value it at more than $150 billion.
Musk himself said in early 2021 that Starlink would go public once its cash flow could be predicted “reasonably well.”
“I think it’s gonna go public and I think it’s gonna be the best chance we have of opening up the capital markets in 2023,” said Palihapitiya on the podcast.
As Fortune’s Term Sheet newsletter noted this week, “the American IPO market was basically dead last year.”
Matt Kennedy, senior IPO strategist at Renaissance Capital, a provider of pre-IPO research, told Fortune in December that the equity capital markets…
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