This article first appeared on GuruFocus.
Alphabet Inc. (NASDAQ:GOOG) could be positioned for another meaningful accounting uplift as SpaceX completes a fresh insider tender offer that implies a valuation of about $800 billion. Bloomberg reported the transaction was priced at $421 per share, representing a sharp increase from earlier secondary deals and potentially resetting the carrying value of Alphabet’s long-standing stake in Elon Musk’s closely held rocket and satellite company. The tender follows a familiar pattern for investors, where changes in SpaceX’s private-market valuation have flowed through Alphabet’s earnings via unrealized gains on non-marketable equity securities.
Alphabet has been invested in SpaceX since at least 2015, when Google partnered with Fidelity Investments in a $1 billion funding round that secured a combined stake of roughly 10% at the time. While the company does not disclose individual private holdings in its financial statements, past revaluations have had tangible earnings implications. In April, Alphabet disclosed an $8 billion unrealized gain tied to an investment in a private company, widely understood to be SpaceX, after a tender offer late last year valued the business at about $350 billion, helping lift net income for the March quarter above Wall Street expectations.
With the latest tender implying a much higher valuation, investors may be watching Alphabet’s upcoming earnings closely for signs of a similar accounting benefit. A Google representative declined to comment, citing a policy of not discussing individual private investments, but prior disclosures suggest that shifts in SpaceX’s valuation can pass through to reported results. If reflected again, the revaluation could quietly add to Alphabet’s earnings narrative, even as the underlying asset remains firmly private.