Alphabet set for paper gains as SpaceX valuation soars
Alphabet Inc. (GOOG, GOOGL) is expected to record another significant paper gain following SpaceX’s completion of a tender offer that values the closely held company at roughly $800 billion.
The insider share sale was priced at $421 per share, representing a sharp increase from previous secondary transactions, News.Az reports, citing Bloomberg.
This rise is likely to boost the carrying value of Alphabet’s long-standing investment in Elon Musk’s rocket and satellite company.
Alphabet, Google’s parent company, has been an investor in SpaceX since at least 2015, when it joined Fidelity Investments in a $1 billion funding round for an estimated combined 10% stake. A Google spokesperson declined to comment, citing company policy on private holdings.
A similar revaluation earlier this year contributed to Alphabet’s earnings. In April, the company reported an $8 billion unrealized gain tied to a private company — widely understood to be SpaceX — after a tender offer the previous year valued SpaceX at about $350 billion. That gain helped Alphabet exceed Wall Street expectations for its March-quarter net income.
While Alphabet does not disclose individual private holdings in its filings, prior changes in SpaceX’s valuation have been reflected as “unrealized gains on non-marketable equity securities.” With the latest tender implying a higher valuation, investors will closely watch Alphabet’s upcoming earnings report for another potential accounting boost.
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