I was going to post some thoughts on the acquisition (which was really just an increase in equity from a minority to a hundred percent), but before I had an opportunity to do so, Jon Goff must have channeled me. A “skunkworks for NG” was exactly what I thought when I heard the news.

There will probably be more tomorrow. Dennis Poulos was the only NG person at the conference, and he was only there on Thursday (and he’s probably not a spokesman for the company on the issue). Alex Tai had little to say about it (with regard to implications for SpaceShipTwo) yesterday, other than that he thought it was a good (even great) thing, and that it was “Northrop’s story, not his,” to tell.

But I think that this points out that the nature of this business is much more complex than many would like to make it, and it’s not simply the “Big Bad, Small Good” template that many like to think, and that the line between New Space and Old Space has never been as sharp as many thought, and it’s becoming progressively blurrier. As Jon says, the Boeings and Northrop Grummans, and Lockheed Martins are recognizing that the new century brings new business realities, and it’s particularly worth considering, in light of the Apollo anniversary last week, that the old space age is over, and the new effectively begun, despite Mike Griffin’s attempt to resurrect Apollo, which seems likely to fail.

I have always swum in both seas, and have often had former colleagues at Boeing (now fairly high in management) tell me that they’re interested in this new business, but it’s not obvious how to break in, other than watch, and observe, and when something succeeds, to acquire it. And of course, they didn’t need to tell me that, because it’s obvious, from a business sense. They’re simply too risk averse, by the nature of their being large publicly-held corporations, and their existing business relationships, to do things like this from scratch on their own, and that’s not a criticism, just a statement of fact. They have to be so, because they have a fiduciary responsibility to their stockholders, many of whom are pensioners, to not take big gambles with the company’s money, on new but uncertain markets and business lines.

The fact that such acquisitions are now occurring is to me a sign of the transition of the old age to the new. When we really know that it’s real will be when one of them buys one of the new companies, born in this age, such as XCOR.

[Update a while later]

I should make one other point. This acquisition really has very little to do with space. SpaceShipTwo may be one of Scaled’s most well-known current projects, but they’re first and foremost an aircraft company, and that’s the bulk of their activities. I think that NG saw this as an aviation, or aerospace acquisition. To the degree that it helped them on the space side at all, that would just be gravy.