SpaceX could soon be worth $350B thanks to this deal
What's the story
SpaceX, the trailblazing aerospace manufacturer and space transportation company headed by Elon Musk, is said to be mulling a tender offer that could boost its valuation to nearly $350 billion, according to Bloomberg.
If it goes through, the move would easily surpass the company's previously speculated $255 billion valuation reported last month.
It would also cement SpaceX's status as the most valuable private start-up in the world.
Valuation increase
A significant leap from previous valuation
Earlier this year, SpaceX's valuation was pegged at about $210 billion in a tender offer. The ongoing discussions about the possible sale of insider shares are still in progress.
The details of any possible transaction could vary based on the interest of insider sellers and buyers.
If the tender offer succeeds and SpaceX's valuation hits the projected $350 billion, it would put the company next to some of the biggest publicly traded companies in the world in terms of m-cap.
Investor benefits
Tender offer could provide liquidity for investors
The proposed tender or secondary offering would enable employees and some early shareholders to sell their shares.
This move is viewed as a strategy to provide liquidity for investors in SpaceX, as Musk's ties with President-elect Donald Trump strengthen.
The potential surge in valuation highlights the massive growth that Musk's empire has witnessed since the US presidential election.
Wealth growth
Musk's wealth and Tesla's shares soar post-election
The possible increase in SpaceX's valuation comes at a time when Tesla Inc.'s shares and Musk's own wealth have skyrocketed.
Tesla's shares have risen by 42% since November 5. Meanwhile, Musk's own wealth has skyrocketed to an estimated $353 billion, according to the Bloomberg Billionaires Index.