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SpaceX Will “Likely” IPO Its Starlink Internet Satellite Business

by Loknath Das
written by Loknath Das

Elon Musk may never IPO SpaceX — but he’s not averse to IPO’ing one of SpaceX’s most profitable subsidiaries. This is the upshot of a report today from Bloomberg.

Quoting SpaceX COO Gwynne Shotwell speaking at a private investor event hosted by JPMorgan Chase & Co. in Miami: “Right now, we are a private company, but Starlink is the right kind of business that we can go ahead and take public. That particular piece is an element of the business that we are likely to spin out and go public.”

SpaceX Starlink-4 rocket on its launch pad

IMAGE SOURCE: SPACEX.

Starlink, of course, is the new business that SpaceX is building, and for which it’s already conducted a total of four Falcon 9 missions, launching a total of 240 internet broadband satellites into low Earth orbit. As SpaceX has described its plans, once Starlink has 800 satellites in orbit, it should be able to begin providing internet service to customers on Earth — and at the rate these launches are going up, this could happen as early as five or six months from now.

Ultimately, Musk says he intends to put 12,000, or perhaps 42,000 satellites in orbit (this is Elon Musk, after all. The numbers move around a lot). And by 2025, SpaceX hopes to be earning as much as $22 billion annually from its satellite broadband internet business — even more money than SpaceX earns from launching other people’s satellites into orbit!

Looked at that way, maybe it’s a good thing that Elon Musk doesn’t want to IPO SpaceX. Maybe the company you really want to IPO … is Starlink.

[“source=fool”]

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Gadgets News

Xiaomi Said to Target as Much as $6.1 Billion in Honk Kong IPO

by Loknath Das
written by Loknath Das

Xiaomi Said to Target as Much as $6.1 Billion in Honk Kong IPO

Chinese smartphone maker Xiaomi Corp is planning to raise up to $6.1 billion (roughly Rs. 41,500 crores) from a Hong Kong IPO launching this week, people with knowledge of the matter said, in what will be one of the biggest tech floats globally of recent years.

Xiaomi, which also makes Internet-connected devices, plans to sell about 2.18 billion shares including about 65 percent primary shares in its initial public offering (IPO) at a price range of HKD 17 to HKD 22 ($2.17 to $2.80) each, said two of the people.

The Beijing-based, Cayman-domiciled company plans to bring in eight cornerstone investors including US chipmaker Qualcomm, Chinese express delivery company S.F. Holding Co, domestic telecom service provider China Mobile and state-run conglomerate China Merchants Group, according to the people.

The cornerstone investors are expected to buy about 13 percent to 15 percent of the shares being offered in the IPO, the people said. The line-up of cornerstone investors could be changed before the company takes orders from retail investors on Monday, they said.

The company will open the book to intuitional investors on Thursday, they added.

Xiaomi, China Mobile and China Merchants Group declined to comment. Qualcomm and S.F. Holding did not immediately respond to requests for comment. All the people declined to be identified as the information was not public.

Xiaomi lowered its likely valuation to a range of $55 billion to $70 billion following its decision to delay its mainland share offering until after its Hong Kong IPO, Reuters reported on Tuesday.

The delay was triggered by a dispute between the company and regulators over the valuation of its China depositary receipts (CDRs), sources said, casting doubt on Beijing’s efforts to lure foreign-listed Chinese tech giants back home.

Xiaomi had been expected to raise up to $10 billion, split between its Hong Kong and mainland offerings. The delay to its CDRs is a blow for Chinese officials, who designed them as a means for China to compete globally for major tech listings and give mainland investors access to the country’s tech champions.

Xiaomi’s blockbuster Hong Kong offering, on the other hand, is set to be the first listing under new exchange rules designed to attract tech floats, as competition heats up between Hong Kong, New York and the Chinese mainland.

China’s largest provider of on-demand online services, Meituan-Dianping, also plans to file for a Hong Kong IPO later this week, which would be the city’s second multibillion-dollar tech float this year, the people said.

Meituan-Dianping declined to comment.

Xiaomi was set up in 2010 and doubled its smartphone shipments in 2017 to become the world’s fourth-largest maker, showed data from Counterpoint Research, defying a global slowdown in smartphone sales.

CLSA, Goldman Sachs and Morgan Stanley are joint sponsors for Xiaomi’s Hong Kong IPO.

 

 

 

 

[“source=gadgets.ndtv”]

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Internet

Spotify Boasts of 70 Million Subscribers Amid Reports of IPO

by Loknath Das
written by Loknath Das

Spotify Boasts of 70 Million Subscribers Amid Reports of IPO

HIGHLIGHTS

  • Spotify added 10 million paying subscribers since July
  • The company is expected to go public in the coming months
  • Spotify’s closest rival is Apple Music

Spotify announced Thursday that it had hit 70 million subscribers amid reports that the world’s largest music streaming company plans to go public in the coming months.

The Swedish company, which has been valued at up to $20 billion (roughly Rs. 1.26 lakh crores), added the 10 million paying subscribers since its last update in July.

Announcing its new subscriber base online, Spotify did not change its number for total users. It said in June that it had 140 million active users when including listeners who access Spotify’s free, advertising-backed tier.

Spotify’s closest rival is Apple Music, which was launched in 2015 as the market shifts away from the purchased downloading of songs on the tech giant’s iTunes.

Apple said in September that its streaming service had 30 million paying subscribers, showing a still significant gap with nearly 10-year-old Spotify but also indicating that Apple Music is growing quickly.

The subscriber announcement comes amid reports that Spotify plans shortly to go public, using an unusual direct listing rather than a more common initial public offering.

The Wall Street Journal, business network CNBC and news site Axios all reported that Spotify had confidentially filed paperwork at the New York Stock Exchange to pave the way for a direct listing.

Axios said that Spotify appeared to be aiming to go public in the current quarter which ends in March, while The Wall Street Journal said Spotify was looking at March or April.

A Spotify spokeswoman declined to comment.

In a direct listing, Spotify would simply start trading shares rather than securing outside funding through an initial public offering.

A direct listing could save Spotify on filing costs and loosen the trading restrictions on its current investors, but could also be risky without the fresh financing to support the share price.

Spotify and its fellow streaming sites, which allow unlimited, on-demand listening, are credited with fueling the first substantive growth in the recorded music industry since the start of the internet age.

US music consumption jumped by nearly 13 percent in 2017, the sharpest rise in recent memory, according to analytical firm BuzzAngle Music.

But Spotify has also faced criticism and legal challenges from artists who say that they see little of the money.

Last week Spotify was slapped with a $1.6 billion (roughly Rs. 10,000 crores) suit by Wixen Music Publishing, which owns the rights to works by artists such as Neil Young and The Doors. The publisher accused Spotify of failing to secure proper licenses in its rush to build a 30 million-song catalog.

[“Source-gadgets.ndtv”]

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