GE and SpaceX currently have about the same market valuation of $150 Billion. GE is currently two companies, GE and GE Healthcare. GE is worth about $110 Billion and GE Healthcare about $40 billion.
GE Aviation, GE Healthcare, and the combined GE Renewable Energy, GE Power, and GE Digital businesses will become three industry-leading, global, investment-grade public companies.
GE already executed a tax-free spin-off of Healthcare in early 2023 and will spinout Renewable Energy and Power company in early 2024.
Following these transactions, GE will be an aviation-focused company shaping the future of flight.
GE was a conglomerate and then it becomes three companies. GE Aviation, GE Healthcare and GE Power & Digital.
GE Aviation has $26B in revenue and $5.5 B in profit GE Power and the rest is about $30B in revenue and about -$0.5B in profit (losses).
Market caps could end up initially being $40B Health, $60B Aviation, $40B Varona.
SpaceX in 2025 could have a $200B valuation and Starlink $300B valuation in 2025. SpaceX and SpaceX Starlink could both be valued at over $1 trillion in 2030.
Starlink could easily be the higher valuation company with 20% control of the entire cellular industry and 300 million subscribers to the high bandwidth internet.
SpaceX is going to go after air cargo. This was said by SpaceX board member Antonio Gracias on the All-in-podcast in April 2023. This could be $200B in annual revenue.
SpaceX will go after passenger aviation. Gwynn Shotwell and Elon have talked about point-to-point travel. Both SpaceX Air cargo and passenger service could spinout in IPOs around 2030-2032. SpaceX Mars, launch would stay the main private company.
There are many articles discussing why spinoffs are becoming more popular than straight IPOs.
GE was a conglomerate and all three partial companies (GE Health, GE Power, GE Aviation) will start their names with the brand GE. Does that make the split more equal to being called the successor company to GE? AT&T was split into eight pieces. Seven Bell system companies and a piece that was called AT&T. Four of the Bell pieces later merged back into AT&T but it was Southwest Bell that was driving the transactions. They chose the name AT&T instead of Southwest Bell. Which are the spinoff and which is the successor? GE started a 136 years ago in the electricity business. The power division is the successor to the original business. Aviation is the biggest by profit. But other parts have more revenue.
SpaceX by 2034 could become SpaceX Earth Communications (aka Starlink), SpaceX Mars and Launch (aka SpaceX), SpaceX Cargo, SpaceX Passengers, SpaceX Moon, SpaceX modular satellites. Which is the “main” company? SpaceX Mars and Launch because it has more of the original rockets? But what if Cargo and Passengers have their own fleets and Mechazillas?
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
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I don’t know about splitting SpaceX is consistent with the core company values of making the species multiplanetary etc. It’s not about hoarding money.
Wasn’t StarLink just a way to get funding for the important project? I don’t know much about the corporate tax rules in the US but it must be harder to move capital between different companies than just internally under a common umbrella.
However, if they go public (like Tesla) it will move in the direction of money hoarding quarter capitalism instead of long term interplanetary adventures.