"SpaceX's insider share sale was priced at $421 a share, Bloomberg reported Friday, which would mark a sharp jump in valuation from earlier secondary transactions. That is likely to lift the carrying value of Google's long-standing investment in Elon Musk's rocket and satellite company. Alphabet, Google's parent, has been an investor in SpaceX since at least 2015, when it joined Fidelity Investments in a $1 billion funding round for a combined stake of about 10% at the time, Bloomberg has reported."
"A similar revaluation boosted Alphabet's earnings earlier this year. In April, the company disclosed an $8 billion unrealized gain tied to its investment in a private company - widely understood to be SpaceX - after a tender offer late last year valued the company at about $350 billion. That gain helped lift Alphabet's net income for the March quarter above Wall Street expectations."
SpaceX's insider tender was priced at $421 a share, implying an overall valuation around $800 billion and prompting a large paper gain for Alphabet. Alphabet's long-standing investment in SpaceX dates to at least 2015, when it joined Fidelity in a $1 billion funding round for a combined stake of about 10%. A prior tender that valued SpaceX near $350 billion produced an $8 billion unrealized gain that lifted Alphabet's March-quarter net income. Alphabet does not disclose individual private holdings and declined to comment. Valuation changes have been recorded as "unrealized gains on non-marketable equity securities," and investors will watch the next earnings report for further accounting effects.
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