Boeing, Lockheed in talks to sell United Launch Alliance to Sierra Space – Reuters

Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT) are in talks to sell their United Launch Alliance rocket-launching joint venture to Sierra Space, in a deal that could value ULA at $2B-$3B, Reuters reported Friday.

The two companies reportedly explored selling ULA in 2019 but could not agree on terms with potential buyers; Jeff Bezos’ Blue Origin and Cerberus Capital Management reportedly placed bids in early 2023 for the company.

For Boeing (BA), parting with ULA would represent a strategic move under new CEO Kelly Ortberg and allow the company to concentrate on its core aerospace and defense businesses while reaping some cash from a sale.

The leading provider of space launch services to the U.S. government is lagging its profit goals and losing workers, with a record number of launches expected next year, Bloomberg reported earlier this week.

ULA has lost ~45 of its 105 Launch Operations engineers at its primary launch site in Florida, which has caused the postponement of work for future missions, according to the report.