SpaceX is considering an acquisition at a valuation of 350 billion baht, the compensation case loss does not affect Musk's position as the world's richest person

According to Bloomberg, SpaceX, the space exploration company owned by Elon Musk, is discussing the sale of internal stocks at a valuation of $350 billion, a significant rise from the reported $255 billion last month, which will consolidate SpaceX's position as the world's most valuable private startup. A Delaware judge upheld the ruling on Musk's 2018 compensation plan, but it did not harm his status as the world's richest person.

SpaceX has a valuation of $350 billion.

Insiders say that negotiations with SpaceX are currently underway and the details of the potential transaction may change based on the interests of the internal sellers and buyers. Employees and some early shareholders can provide liquidity for SpaceX investors with minority stakes by selling their stocks through a tender offer. The current valuation being discussed has risen significantly to $350 billion, compared to last month's $255 billion.

SpaceX was recently approved by the Federal Communications Commission to provide mobile satellite services through its Starlink constellation, and to collaborate with the second largest wireless carrier in the United States, T-Mobile US Inc., to supplement T-Mobile's cellular network coverage with Starlink satellites. Starlink's total sales this year will reach $10 billion, surpassing its rocket launch business, accounting for two-thirds of total sales. It is rumored that Musk is also considering spinning off the rapidly growing Starlink satellite business from SpaceX and conducting an Initial Public Offering (IPO).

(SpaceX, owned by Musk, has been approved to provide mobile direct satellite services with Starlink)

Musk's compensation plan failed, but still the world's richest

Since Donald Trump's election victory pushed Musk, the so-called 'First Brother,' into the political spotlight, Musk's many business values have been skyrocketing. According to the Bloomberg Billionaires Index, since November 5, TSL's stock price has risen by 42%, and Musk's own wealth has soared to around $353 billion, making him the world's richest person.

However, according to CNBC, a judge in Delaware upheld the ruling on Musk's 2018 compensation plan, stating that even if shareholders voted in favor of Musk receiving a high Dividend at this year's shareholder meeting, the court still ruled that Musk alone "controlled TSL" and imposed his compensation terms on the board without fair negotiation. The judge ruled that the approval process for the compensation plan had "serious flaws" and approved the payment of $345 million in attorney's fees to lawyers who successfully sued on behalf of TSL shareholders.

According to previous reports from Chain News, Musk has not received a fixed salary since 2018. Instead, he receives rewards similar to performance bonuses and Dividends each time he achieves phased performance goals set by the company. After meeting the target, Musk can subscribe to TSL shares at a price of 23.34 per share, but there is a lock-up period of 5 years.

(See how Tesla makes money! How does Musk get rich compensation?)

And TSL shareholders, who were previously unable to invest too much energy in TSL's operations due to Musk's acquisition of Twitter (now renamed X), have also been somewhat dissatisfied. Finally, they have taken the matter to court and requested that the court revoke the 2018 compensation plan granted to Musk by the TSL board of directors.

Based on the closing price of $357 on Monday, Musk's remaining TSL shares are worth nearly $150 billion. This does not include his stake in SpaceX, which is enough to keep him as the world's richest person. Equilar estimates that Musk's 2018 compensation plan was worth $101.4 billion at today's stock price.

This article SpaceX considers offering an acquisition with a valuation of 350 billion baht, the compensation case fails to affect Musk's world's richest position first appeared on Chain News ABMedia.