While Boeing's past in the space industry is undeniable, it's the company's present and future that's the problem. Most notably, the aerospace giant's cash issues have the company looking to raise $19 billion in a stock offering while still pursuing other sources of revenue. The company lost $6 billion in the third quarter and has already begun selling off assets, like the deal that sent small defense subsidiary, Digital Receiver Technology, to Thales Defense & Security last week.
Following the mixed success that saw Boeing's Starliner capsule reach the International Space Station, but return empty, the Wall Street Journal reports that the company's entire space division might be on the block.
Most Read on IEN:
According to the report, the rumblings are in the early stages, and a deal isn't close, but Boeing's new CEO, Kelly Ortberg, has been clear with his intentions to narrow the company's focus. In a memo to employees this month, Ortberg said Boeing needs to "focus our resources on performing and innovating in the areas that are core to who we are." And that renewed focus just might not include the company's space division.
While SpaceX has replaced Boeing as NASA's preferred partner, Blue Origin, the commercial space operation owned by Amazon's Jeff Bezos, could be a potential suitor. Boeing reportedly met with Blue Origin before Ortberg came aboard. The company is already priming its New Glenn rockets to compete with SpaceX for upcoming missions from NASA and other third parties.
According to Jalopnik, Ortberg confirmed Boeing's discussions with Blue Origin. Blue Origin already does some business with NASA, including work on the Artemis lunar lander program.
Last month, Ortberg fired Ted Colbert, the now former president and CEO of Boeing's space and defense business, Boeing Defense, Space & Security. COO Steve Parker temporarily replaced him.
Another piece that could leave Boeing's hangar is United Launch Alliance, a joint venture with Lockheed Martin specializing in national security launches. The venture has reportedly spent the last year looking for a buyer.
While Boeing has been integral to NASA missions since Neil Armstrong took that small step, the next big leap might be taken by Blue Origin.
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.
WEBVTT
X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.200 --> 00:05.650
While Boeing's past in the space industry is
undeniable, it's the company's present and
00:05.659 --> 00:07.659
future.
That's the problem.
00:07.869 --> 00:14.369
Most notably, the aerospace giants, cash issues
have the company looking to raise $19 billion
00:14.380 --> 00:18.069
in a stock offering while still pursuing other
sources of revenue.
00:18.340 --> 00:23.260
The company lost $6 billion in the third
quarter and has already begun selling off
00:23.270 --> 00:29.760
assets like the deal that sent small defense
subsidiary digital receiver technology to Talis
00:29.770 --> 00:35.540
defense and security last week following the
mixed success that saw Boeing starliner capsule
00:35.549 --> 00:41.020
reach the International Space Station but
return empty the Wall Street journal reports
00:41.029 --> 00:45.299
that the company's entire space division might
be on the block.
00:45.310 --> 00:50.340
According to the report, the rumblings are in
the early stages and the deal isn't close.
00:50.349 --> 00:55.599
But Boeing's new Ceo Kelly Ortberg has been
clear with his intentions to narrow the
00:55.610 --> 00:58.860
company's focus in a memo to employees this
month.
00:58.869 --> 01:05.019
Ortberg said Boeing needs to quote, focus our
resources on performing and innovating in the
01:05.029 --> 01:10.919
areas that are core to who we are and that
renewed focus just might not include the
01:10.930 --> 01:15.169
company's space Division.
While spacex has replaced Boeing as nasa's
01:15.180 --> 01:21.870
preferred partner, Blue origin, the commercial
space operation owned by Amazon's Jeff Bezos
01:21.879 --> 01:27.849
could be a potential suitor Boeing reportedly
met with Blue origin before Ortberg came aboard
01:27.860 --> 01:33.069
and the company is already priming its new Glen
rockets to compete with SpaceX for upcoming
01:33.080 --> 01:38.750
missions from both NASA and other third parties.
According to Jalopnik Ortberg confirmed
01:38.760 --> 01:40.930
Boeing's discussions with blue origin.
01:41.250 --> 01:46.010
Blue origin already does some business with
NASA including work on the Artemis Loon Lander
01:46.019 --> 01:49.680
program.
Last month, Ortberg fired Ted Colbert,
01:49.739 --> 01:54.370
the now former president and Ceo of Boeing's
Space and defense business.
01:54.379 --> 02:00.010
Boeing defense based in security.
He was temporarily replaced by Coo Steve Parker.
02:00.019 --> 02:04.330
Another piece that could leave Boeing's hangar
is United Launch Alliance,
02:04.519 --> 02:09.270
a joint venture with Lockheed Martin that
specializes in national security launches.
02:09.690 --> 02:14.619
That venture has reportedly spent the last year
looking for a buyer while Boeing has been
02:14.630 --> 02:19.089
integral to NASA missions since Neil Armstrong
took that small step.
02:19.520 --> 02:23.009
The next big leap might be taken by blue origin.
02:23.449 --> 02:26.309
I'm David Manti.
This is manufacturing now.