Chapter 502 - Acquiring An Aerospace Company (1/2)
Chapter 502: Acquiring An Aeros.p.a.ce Company
Translator: _Min_ Editor: Rundi
The development of the private s.p.a.ce industry had context to it. It was the failure of the early s.p.a.ce shuttles, and the end of the cold war that caused the conclusion of the s.p.a.ce race, The storm led the UA to drop a large number of important projects in the 80s which resulted in aeros.p.a.ce giants never realizing their investment and their enthusiasm for the industry taking a significant hit.
After the cut in the 90s, as well as the integration of the aeros.p.a.ce industry, Pratt & Whitney, Boeing, Lockheed Martin’s monopoly of the market were not comparable to the 60s. They were more sensitive to risk and began to be half-hearted on commercial launches, only favoring the defense business. The price of launches was not only expensive but the RD-180 engine invested by the UA, due to manufacturers reluctance to build a plant, must depend on Russia for production.
It was this reason Russia could hold their head high against sanctions. They threatened to terminate the cooperation and to “cut the food supply” of the International s.p.a.ce Station. “Cutting the food supply” has been staged more than once, and time-tested. Until the rise of private s.p.a.ce companies in recent years, this kind of insatiable threat started to lose its effectiveness.
Facts proved that the bureaucratic-led industry had no future, it was also reflected most vividly in the aeros.p.a.ce industry.
Take the famous private s.p.a.ce company s.p.a.ceX as an example.
Its launch price has been low to a near-absurd point at only a fraction of the cost of the market. No country or business in the world could compete with them. These new companies inherited a large number of research results from the old era of s.p.a.ce giants, but not the debt.
Speaking of s.p.a.ceX boss Elon Musk, he was also a legendary figure, but his popularity in Hua was far less than Steve Jobs. But if a few pieces of his astonis.h.i.+ng feats were mentioned, his name was vivid in people’s memory. For example, he and his partner founded PayPal online payment mechanism and by far the most successful way to pay online. After acquisition by eBay, he earned his first pot of gold in life.
Another example is the most recent year, the most popular car brand without a doubt, Tesla, was designed by him.
Not only that, he invited three well-known entrepreneurs to co-found s.p.a.ceX and made a strategic plan with “s.p.a.ce tourism as a starting point. Open the era of privatization of s.p.a.ce resources, and the destination to Mars.”
And the fact proved that in the field of s.p.a.ce technology, they were indeed walking in the forefront of the world.
Falcon rocket appeared out of nowhere, its trust weight ratio (trust to weight ratio) reached an astounding 1: 150! It replaced Russia’s best score of 1: 120 and became the world’s most advanced rocket. What made people more envious was that the rocket not only had a low launch cost, it actually could be reused! The first stage rocket hovered at the height of two hundred meters and then dropped vertically without damage.
Finally, its engine was 3D printed.
With so many advantages infused together, its market compet.i.tiveness is unparalleled. At the same time, its relations.h.i.+p with NASA, the UA Air Force, could almost be described as best friends. The pile of orders came storming in, and Elon Musk made a great fortune.
But it was precisely because of its astounding compet.i.tiveness that a lot of small private s.p.a.ce companies were forced to the brink of bankruptcy.
s.p.a.ceX almost monopolized the most profitable defense orders, and the launch profits of commercial satellites were compressed to the limit for various reasons. For this very reason, Jiang Chen managed to use 5 billion USD floor price to buy two s.p.a.ce companies for restructuring, enrich the Celestial Trade wholly-owned s.p.a.ce science and technology center talent team.
Kelvin Burrow, former director and chief technical officer of Mississippi Aeros.p.a.ce Technologies, has a Ph.D. degree at Amber Reid University of Aeronautics and Astronautics and were involved in the early development of the Falcon Rockets. He later resigned to return home to establish the Mississippi Aeros.p.a.ce Technologies. But it turned out that not all scientists could be great businesspeople like Gates and Jobs. After failing to invest, his company owed 500 million USD in debt and wandered on the brink of bankruptcy.
Fortunately, Jiang Chen came just in time to “help” as he was able to keep his life’s efforts without selling at a discount.
Of course, capital is ruthless. The first thing Jiang Chen did after he became chairman was sell most of the company’s a.s.sets at a low price. At the same time offered their employees two times the original salary and a work visa to Xin.
“Do you know what you did? These a.s.sets are worth at least 200 million USD! And you sold it at a 50% discount to my old boss. Oh, G.o.d… If I’m Mr. Musk, I would be laughing in my sleep.” They left Coro Airport, Kelvin dragged onto Jiang Chen and complained pa.s.sionately.
“Mr. Musk won’t laugh in his sleep, allow me to be honest, s.p.a.ceX won’t care about your equipment. Coincidentally, I don’t care either.” Jiang Chen used a leisure tone and opened the car door for him.
“What do you mean?” The honest Kelvin immediately frowned.
“Exactly what you heard, trust me, when you arrive at the destination, you’ll have the same perspective as me.” Jiang Chen sat at the front pa.s.senger seat.
Kelvin in the back glanced at the expressionless girl driving and then looked at Jiang Chen anxiously.