Musk's SpaceX Preparing to Launch Tender Offer in Dec at $135/share, FT Reports

Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health center in Denpasar, Bali, May 19, 2024. (Reuters)
Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health center in Denpasar, Bali, May 19, 2024. (Reuters)
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Musk's SpaceX Preparing to Launch Tender Offer in Dec at $135/share, FT Reports

Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health center in Denpasar, Bali, May 19, 2024. (Reuters)
Elon Musk, chief executive officer of SpaceX and Tesla, attends the launch of SpaceX's Starlink internet service in Indonesia at a sub district community health center in Denpasar, Bali, May 19, 2024. (Reuters)

Elon Musk's SpaceX is preparing to launch a tender offer in December to sell existing shares at a price of $135 per share, the Financial Times reported on Friday, citing people with knowledge of the discussions.

The tender offer would value SpaceX at more than $250 billion, according to the report.

SpaceX did not immediately respond to a Reuters request for comment, according to Reuters.

Musk, the world's richest person, is expected to wield significant influence in Washington to secure favorable government treatment for his companies, including SpaceX, after Donald Trump's victory for a second presidency.

Musk's dream of transporting humans to Mars could also become a bigger national priority under Trump, Reuters reported earlier this month.

NASA's Artemis program, which aims to use SpaceX's Starship rocket to put humans on the moon as a proving ground for later Mars missions, is expected to focus more on the Red Planet under Trump and target uncrewed missions there this decade.

Under Trump, SpaceX is also expected to push for even softer regulations on worker safety and safety of participants in private space flights in orbit.

A Reuters investigation last year documented at least 600 worker injuries at SpaceX facilities across the US, and how SpaceX disregarded safety regulations and standard practices.



Qualcomm Strengthens AI Portfolio with $2.4 Billion Alphawave Deal

The Qualcomm logo is during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
The Qualcomm logo is during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
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Qualcomm Strengthens AI Portfolio with $2.4 Billion Alphawave Deal

The Qualcomm logo is during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
The Qualcomm logo is during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)

US chipmaker Qualcomm on Monday agreed to acquire British semiconductor company Alphawave for about $2.4 billion as part of efforts to strengthen its artificial intelligence technology.

Alphawave shareholders will receive 183 pence per share, a nearly 96% premium to the price immediately before Qualcomm disclosed its interest in the company. The shares jumped 22% in early London trade to just below the offer price.

US-based firms have been snapping up British assets, taking advantage of a market that is plagued by comparatively weaker valuations and stunted growth.

Alphawave, which designs and licenses semiconductor technology for data centers, networking and storage, had garnered takeover interest from Qualcomm and SoftBank-owned chip tech provider Arm in early April for its "serdes" technology.

The technology underpins the speed at which data is processed by chips - crucial for AI development - and serves as the foundation for Broadcom's and Marvell Technology's multibillion-dollar bespoke chip businesses.

Arm walked away after initial discussions with Alphawave, Reuters exclusively reported in April citing sources.

Qualcomm also tabled two alternative all-share offers to Alphawave's shareholders, after receiving multiple extensions from the UK's takeover panel to table a firm offer.

The British company said it considers the terms of the cash offer to be fair and reasonable and intends to unanimously recommend it to its shareholders.

Alphawave also completed the disposal of its stake in WiseWave, its joint venture with Chinese investment firm Wise Road Capital, to existing state shareholders on Monday.