United Launch Alliance‘s (ULA) owners, Boeing Co. (NYSE:BA) and Lockheed Martin Corp. (NYSE:LMT), are reportedly considering selling the company to Sierra Space for a deal valuing the rocket launch service provider around $2 to $3 billion.
What Happened: ULA is a joint venture between Boeing and Lockheed Martin. The two are in negotiations with Sierra Space to sell ULA but it might not culminate in a deal, Reuters reported, citing two people familiar with the matter.
The deal, if reached, will lead to a separation of ULA from its two co-founders and joint owners to a smaller, privately held firm.
There has been speculation of ULA’s divestiture over the past as well. Last year, it was reported that Jeff Bezos‘ Blue Origin had placed a bid for ULA, but it seemingly did not culminate in a deal.
Why It Matters: ULA, formed in 2006, was once a prime player in the industry owing to its position as the primary choice for Pentagon satellite launches. However, the military is currently also relying on Elon Musk‘s SpaceX for launch missions.
ULA has not been able to meet the launch rate of its rival despite launching its new and cheaper Vulcan Centaur rocket for the first time earlier this year. As per a report from analytics firm Bryce Tech, SpaceX launched 525 spacecraft in the first quarter of 2023 while ULA launched just seven.
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Photo courtesy: United Launch Alliance
