Boeing, Lockheed Martin Consider Selling ULA Space Launch Business

This weekend NASA said they'd turn to SpaceX to return two astronauts from the International Space Station, notes the Associated Press, "rather than risk using the Boeing Starliner capsule that delivered them." (They add that Boeing's capsule "has been plagued by problems with its propulsion system.") But Reuters reported that even before the setback, Boeing and Lockheed Martin were "in talks to sell their rocket-launching joint venture United Launch Alliance to Sierra Space, two people familiar with the discussions said."A deal to sell ULA, a major provider of launch services to the U.S. government and a top rival to Elon Musk's SpaceX, would mark a significant shift in the U.S. space launch industry as ULA separates from two of the largest defense contractors to a smaller, privately held firm. The potential sale comes after years of speculation about ULA's future and failed attempts to divest the joint venture over the past decade. In 2019, Boeing and Lockheed Martin reportedly explored selling ULA but couldn't agree on terms with potential buyers... Jeff Bezos' Blue Origin and Cerberus Capital Management had placed bids in early 2023 for the company, according to people familiar with the negotiations. Rocket Lab had also expressed interest, two people said. None of those discussions led to a deal... A potential deal could accelerate deployment of [Sierra Space's] crewed spaceflight business, analysts said. A ULA acquisition, they said, would give the company in-house access to launch vehicles that could send its spaceplane and space-station components into Earth's orbit, rather than spending hundreds of millions of dollars for those launches as a customer... ULA has faced challenges in scaling Vulcan production and upping its launch rate to meet commercial demand and fulfill contract obligations with the Space Force, which in 2021 picked Vulcan for a sizable chunk of national security missions alongside SpaceX's Falcon fleet. A sale of ULA would unshackle the company from Boeing and Lockheed, whose boards have long resisted ideas from ULA to expand the business beyond rockets and into new competitive markets such as lunar habitats or maneuverable spacecraft, according to former executives. While Reuters's sources say the negotiations could still end without a deal, they also said ULA could be valued between $2 billion and $3 billion, giving Boeing some cash while shifting its focus to its core businesses of aerospace and defense. Thanks to long-time Slashdot reader schwit1 for sharing the news.

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