WASHINGTON, District of Columbia — Northrop Grumman Corp. agreed July 5 to increase its stake in Scaled Composites — the builder of the Ansari X-Prize Cup-winning SpaceShipOne and a host of record-breaking aircraft — from 40 percent to 100 percent, Northrop Grumman spokesman Dan McClain confirmed July 20.

McClain, who declined to disclose the value of the deal, said the company expects it to close in August pending regulatory approval by the U.S. Department of Justice.

Northrop Grumman increases ownership stake in Scale Composites to 100%.

Scaled Composites currently is working with Sir Richard Branson's Virgin Galactic venture on a vehicle designated for now as SpaceShipTwo, which would carry two pilots and six paying passengers into suborbital space for a few minutes of weightlessness. The company also is building a new carrier aircraft, dubbed WhiteKnight2, that will carry SpaceShipTwo to an altitude of 15 kilometers before releasing it to soar to suborbital space.

The two companies last year formed a joint venture called the Spaceship Company to build the new vehicles.

Alex Tai, chief operating officer of Virgin Galactic, declined to comment when asked July 20 how the acquisition would affect his company's dealings with Scaled Composites. "I'm afraid I can't provide you with any comment at this stage and I don't think [Scaled Composites] can either," Tai said.

Scaled Composites, with the backing of Microsoft cofounder Paul Allen, won the $10 million Ansari X Prize in 2004 when SpaceShipOne was piloted to an altitude just above the internationally recognized border of space twice in a two-week period.

Copyright © 2007, Space.com.

07-23-2007 08:55 PM  #1
Just Jerry Freeform rockets advocate   Joined: Aug 2006 Posts: 1320	I am a bit surprised this made "Planet News" (MR/HPR/EX). I was a former neighbor of Scaled and was a bidder for propulsion for SS1 (K2 was screwed hard BTW). This means YA private firm needs to spearhead space access. When Lockheed gets involved in a business that means it has been militarized. This is homeland security and Government securing the production resources of known good space technology. Just Jerry

07-24-2007 09:53 AM  #2
tbrogan Sniper Kitty = Dead Dogs   Joined: Apr 2007 Posts: 106	Lost another one! No comment, no dollar amounts, no future plans, generally equates with no company any more. After watching the areospace & military industry on Long Island (NY) go through this with basically the press releases it speaks louder than if they came right out and stated that this is the end of the company as anyone knows it! Tom p.s. Dick Chaney loves me and wants to take me hunting!!

07-24-2007 01:12 PM  #3
Lawrence.Baker New Member   Joined: Jun 2007 Posts: 7	I must say I was shocked to read the article. I didn't know that Scaled Composites was a publicly-traded company. Even then, how would Lockheed be able to buy 100% of the stock? The Stock holders must have decided collectively that it was in their best interest to sell. I would be interested to see how much stock Rutan had. Was he pressured by LockMart or the US Gov? Maybe there were some financial or technical issues that being part of LockMart would resolve? Or was it just "the money"? At this point, there is a lot that we just don't know. We'll have to see how this plays out. As long a Scaled can continue doing what it does, then I'm good. I would really like to hear a statement from Rutan, though. He strikes me as the kind of guy that would voice his opinion, no matter what other people thought! Lawrence

07-24-2007 02:23 PM  #4
ddmobley Administrator   Joined: Jul 2006 Posts: 4157	Quote: p.s. Dick Chaney loves me and wants to take me hunting!! LOL!!!!!!!!!!!

07-24-2007 02:25 PM  #5
StuBarrett Certified Level Eleven   Joined: Aug 2006 Posts: 149	A private company can have stock. That is how the principles, angels, VCs, and employees 'cash out' when it is sold. Whether or not this is a good deal depends on your perspective, and requires knowledge of the 'deal' that no one here probably possesses. Still, it's our first amendment right to jump up and show our ignorance!! Stu

07-24-2007 02:47 PM  #6
R2K Certified Level Three   Joined: Jul 2007 Posts: 273	Well I dont know how this will change them (why does NG need this company in the first place?) but I was never really under the impression that these guys were amateur anyway so I don't think they really went corporate with this step because they were already there.

07-24-2007 10:10 PM  #7
TWRackers Certified NAR Level Two   Joined: Oct 2006 Posts: 12	I don't quite understand how two of the above posts came up with Lockheed-Martin as the buyer. It was Northrop-Grumman, and they already owned 40% of the stock, so if someone actually thought LM came in and bought 100% of the company... that ain't it. That being said, it won't be quite so bad if SC's work continues on SpaceShipTwo. I'd be pretty upset though if we find out that NG bought the remaining 100% specifically so they'd have the power to shut it down, whether it was their idea or they were pressured to do so from the outside. We'll just have to wait and see, I suppose.

07-25-2007 01:13 PM  #8
Lawrence.Baker New Member   Joined: Jun 2007 Posts: 7	Sorry for the confusion - I meant Northrup/Grummann. Not sure why I said LockMart. Anyway, I agree with TWRackers - I'll be upset if the work on SpaceShipTwo stops because of this. To put a finer point on my concern, if I can't go into space, I at least want to be able to do it vicariously through people with more money than me! Lawrence

07-26-2007 09:24 PM  #9
R2K Certified Level Three   Joined: Jul 2007 Posts: 273	Seems there was an explosion at scaled composites, 2 dead: http://www.cnn.com/2007/US...aceport.blast/index.html