Thanks to a 6.11% stake in SpaceX (SPACE) Google LLC, a wholly owned subsidiary of Alphabet (GOOG), could make at least $100B from its investment once the space exploration company goes public.
According to a regulatory filing in Alaska, Google’s initial investment has been diluted to ~5% due to the dilution impact of the SpaceX/xAI merger, but it is still worth billions of dollars should the valuation reach a record-setting $2T valuation.
While the SpaceX IPO stands to make billionaires out of early investors, including SpaceX President Gwynne Shotwell, Fidelity Investment’s Contrafund, Founders Fund, and even some original SpaceX employees, CEO Elon Musk could become history’s first trillionaire with his 40%+ holding in the company.
With so many individuals at the company poised to see their financial futures change dramatically, Bloomberg raises the possibility of a brain drain in the wake of the IPO.
“One of the biggest questions I have for this is what happens to middle management, even though SpaceX is a very lean company, and some of the upper management that after the IPO will not need to do anything to support themselves,” PitchBook’s Franco Granda said to Bloomberg.
“The investors who got in at 2021 will have life-changing returns, if not career-defining,” Granda added.
SpaceX submitted a confidential filing to go public, aiming for a June offering. The IPO is expected to raise at least $75B, making it the largest initial public offering on record.
The company is reportedly weighing several alternative IPO structures, including a dual-class share structure that would give insiders—including Musk—extra voting power, a tiered lock-up period that would release shares every 20 to 30 days to avert mass selling of shares after the traditional 180-day lock-up period, and a higher-than-usual retail allocation of shares of 30%.
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