Blue Origin, the rocket company owned by Amazon founder Jeff Bezos, has emerged as the sole finalist to buy United Launch Alliance.
The sale is not official, and nothing has been formally announced. The co-owners of United Launch Alliance (ULA), Lockheed Martin and Boeing, have yet to comment publicly on the sale of the company, which, until the rise of SpaceX, was the sole major launch provider in the United States. They declined again on Wednesday.
“Consistent with our corporate practice, Boeing doesn’t comment on potential market rumors or speculation,” a Boeing spokesperson said.
Blue Origin did not return a request for comment.
However, two sources told Ars that Blue Origin is nearing the purchase of ULA. The sources said they have not personally seen any signed agreements, but they expect the sale to be announced within a month or two.
In the 11 months since Ars first reported that ULA was up for sale, the company’s potential buyer has become a topic of widespread speculation and interest. In November, Ars reported that Blue Origin was one of three potential buyers. In December, The Wall Street Journal confirmed that the competition was narrowing and said Blue Origin and a large private equity firm, Cerberus, were the two most likely bidders.
Bezos stock sales
Some recent related activity suggests the sale is imminent. A handful of senior officials at ULA are seeking new jobs. Additionally, Bezos recently sold $2.4 billion in Amazon stock and, in securities filings, disclosed that he could sell an additional $8 billion to $9 billion in stock over the next 12 months. Although there are no confirmed values, there has been speculation in the launch industry that ULA may be sold for $2 billion to $3 billion.
ULA was created in 2006 through a merger of Boeing’s Delta rocket program and Lockheed Martin’s Atlas launcher family. Since then, ULA has been a profitable enterprise for both aerospace giants, thanks to military launch contracts and (until recently) large annual subsidies from the US Department of Defense to maintain “launch readiness” for national security missions.