WASHINGTON (Reuters) -Boeing and Lockheed Martin are in talks to sell their rocket-launching joint venture United Launch Alliance to Sierra Space, two people familiar with the discussions said. Furthermore, the ULA sale talks highlight the evolving landscape of space exploration and commercial interests. #ULASaleTalks
A deal could value ULA at around $2 billion to $3 billion, the sources said.
A deal to sell ULA would significantly shift the U.S. space launch industry. ULA, a major provider for the U.S. government, would separate from large defense contractors. This move to a smaller, privately held firm would alter its competitive stance against SpaceX.
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.
The negotiations could end without a deal, the sources said.
ULA referred Reuters to Boeing and Lockheed for comment. The two companies said they do not comment on market speculation. Sierra did not immediately return a request for comment.
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. Rocket Lab could not be immediately reached.
For Boeing, the potential sale of ULA represents a strategic move under new CEO Kelly Ortberg, who took the helm in August. A deal would allow Boeing to concentrate on its core aerospace and defense businesses while reaping some cash from ULA’s sale. #ULASaleTalks
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