Lockheed Martin, Boeing’s ULA Eyeing Amazon’s Kuiper, Faces Potential Bidders

Summary

  • Lockheed Martin and Boeing share equal ownership in United Launch Alliance (ULA), a producer of launch vehicles for Amazon.com’s satellite internet network, Kuiper.

  • Textron, a business jet manufacturer, has expressed an interest in ULA, although no bidding price has been established and a deal might not occur.

  • The development of ULA’s new rocket, Vulcan Centaur, has been delayed, but is slated for its first launch on January 8. Blue Origin’s BE-4 engine powers the spacecraft’s first stage.

  • Private equity firms are becoming more attracted to space companies with government contracts exposure, an area largely controlled by Elon Musk’s SpaceX.

Lockheed Martin and Boeing’s Joint Venture with ULA

Lockheed Martin (NYSE:) and Boeing (NYSE:) jointly own United Launch Alliance (ULA), a crucial player in the creation of launch vehicles for Amazon.com’s (NASDAQ:) satellite internet initiative, Kuiper.

Interested Stakeholders

Textron (NYSE:), a business jet provider, is showing an interest in ULA according to recent reports. However, no final bidding price has been determined and the possibility of a deal materialising remains uncertain.

The interest in ULA by different entities was explained by CEO Tory Bruno who told Bloomberg News in October, “If I were buying a space business, I’d go look at ULA”.

Developmental Setbacks and Future Projects

The launch of ULA’s latest rocket, Vulcan Centaur, has faced a series of delays. Despite this, it is prepared for its first launch on January 8. Vulcan Centaur’s first stage is being powered by Blue Origin’s BE-4 engine.

Increasing Interest from Private Equity Firms

Investment from private equity firms is being directed more towards space companies that have wide exposure to government contracts. This sector is largely influenced by Elon Musk’s company, SpaceX.

As this develops, the effect on markets, particularly forex and trading, could be substantial. This could potentially influence assets related to these companies and their respective listed equities.

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