Boeing & Lockheed Martin in Talks to Sell ULA to Sierra Space

In a move that could reshape the U.S. space launch industry, aerospace giants Boeing (BA-N) and Lockheed Martin (LMT-N) are reportedly in discussions to sell their rocket-launching joint venture, United Launch Alliance (ULA), to Sierra Space, according to two individuals familiar with the matter.

The potential sale of ULA, a key provider of launch services to the U.S. government and a significant competitor to Elon Musk's SpaceX, marks a pivotal moment in the space sector. If the deal goes through, it would represent a notable shift as ULA transitions from being under the umbrella of two of the world's largest defense contractors to becoming part of a smaller, privately held company.

The discussions between Boeing, Lockheed Martin, and Sierra Space are the latest development in a series of attempts to determine the future of ULA. Over the past decade, there has been considerable speculation about the joint venture’s trajectory, with previous attempts to sell the company failing to materialize. In 2019, Boeing and Lockheed Martin were reportedly exploring options to divest ULA but were unable to reach an agreement on terms with potential buyers.

The current negotiations could still conclude without a deal.

ULA has directed inquiries to its parent companies; and Boeing and Lockheed Martin have declined to comment, stating they "do not respond to market speculation".

Adding further context to the ongoing talks, it was revealed last year that three companies had expressed interest in acquiring ULA. While the identities of two of these potential buyers were not disclosed, the third was identified as Blue Origin, the space exploration company founded by Jeff Bezos.

A successful acquisition of ULA by Sierra Space would be a significant development in the space launch industry, potentially altering the competitive landscape as established defense contractors exit the space.

Sierra Space, already known for its ambitious space endeavors, including its Dream Chaser spaceplane, would gain a substantial foothold in the launch services sector, positioning itself as a formidable player against the likes of SpaceX and Blue Origin.

The outcome of these discussions remains uncertain, but the potential sale highlights the evolving dynamics within the aerospace and defense sectors as companies reevaluate their roles and strategies in an increasingly competitive and rapidly changing market.