James Murdoch's $120m SpaceX stake nears $7.5bn value

James Murdoch invested an estimated $120 million in SpaceX before its record initial public offering, a position now valued at as much as $7.5 billion according to PitchBook senior research analyst Franco Granda.

Court filings from a 2023 lawsuit challenging Elon Musk’s $56 billion Tesla compensation package revealed Murdoch purchased the shares in three tranches between 2019 and 2020. He deployed $100 million through Lupa Systems, his private investment firm, alongside a separate $20 million personal investment. Clues in SpaceX’s public offering documents regarding chief financial officer Bret Johnsen’s stock awards indicate Murdoch’s cost basis was around $4.40 per share.

Even accounting for standard venture capital dynamics—such as a recent five-to-one stock split and potential dilution—the projected 33-fold return represents a staggering capital gain. The windfall would easily surpass the $2.2 billion Murdoch secured from the 2019 sale of 21st Century Fox to Disney.

However, liquidity remains the critical variable for market observers. “Given that James Murdoch has been in the SpaceX orbit for a while, since Tesla, it’s unsurprising that he’s benefited financially,” said Brian Wieser, a media analyst at Madison and Wall. “Though that presumes they can get liquid, holding the shares doesn’t mean anything if you can’t sell them.”

The SpaceX valuation cements a decisive financial break from his family’s traditional media assets. Following a Nevada probate battle last year, James and his sisters each received a $1.1 billion payout and relinquished their stock in News Corp and Fox, severing ties with father Rupert and brother Lachlan.

Since establishing Lupa Systems in 2019, Murdoch has systematically built a diversified portfolio. He recently struck a $300 million deal to acquire a substantial stake in Vox Media. His other investments include the Indian streaming venture Bodhi Tree Systems, Tribeca Enterprises, and MCH Group, the owner of Art Basel.

Murdoch’s access to SpaceX stemmed from a long-running relationship with Musk that began in the late 1990s and led to his 2017 appointment as an independent Tesla director. SEC records show trusts linked to Murdoch have sold $107 million in Tesla stock since last spring. “To me this is no surprise, James has been a savvy global technology investor for decades,” said Jon Miller, chief executive of Integrated Media.