Tag: Jeff Bezos

Bezos sells $2.4 billion in Amazon stock

9:32 am

Capitalism in space: According to SEC filings, Jeff Bezos this week sold $2.4 billion in Amazon stock, adding to all his increasing stock sales in recent years.

Bezos said in 2017 that he was selling $1 billion a year to fund his Blue Origin space venture, but he has been increasing the size and frequency of the stock sales recently. He sold more than $7 billion last year. This is his first stock sale of 2021.

By my count of all his sales since 2017, Bezos has raised about $12 billion in cash. Of this, he has said that he wants to spend $10 billion on fighting “climate change,” as well as at least $1 billion per year on Blue Origin.

One way or the other, Blue Origin has far more cash available to it than SpaceX. Too bad Bezos’ company has done so little with it in the past four years. Four years ago the company was truly a viable competitor to SpaceX, though behind it in the curve. Then Bezos hired a new CEO, Bob Smith, to run the company. The development pace slowed to a crawl as the company shifted gears from using Bezos’ money to fund development to trying to obtain government money instead. That shift forced Blue Origin to bow to government demands, which in turn slowed development of their New Glenn orbital rocket. The company also took the big space approach toward development of its lunar lander, pausing all real design and construction until it won the NASA contract. This made it less attractive a bid, which is one reason SpaceX’s Starship won the contract instead.

In addition, the company ended the many and frequent test flights of New Shepard that had been occurring, slowing the pace to about one launch per year.

In that time Blue Origin lost so much ground that it will now be difficult, but not impossible, to catch up. Maybe these cash sales by Bezos is to give him the capital to catch up. I hope so. We need real competitors to SpaceX.

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What is wrong at Blue Origin?

9:24 am

Link here. The article by Eric Berger depends on many anonymous sources at Blue Origin, and suggests that the central reason the first launch of the company’s orbital New Glenn rocket has been delayed until 2022 at the earliest is because Jeff Bezos decided to have them build its biggest iteration first, rather than take smaller steps upward to that version.

[I]nstead of offering a waypoint between New Shepard and a massive orbital rocket, Bezos ultimately opted to jump right to the massive, 313-foot-tall version. “It’s like if NASA had gone straight from Alan Shepard to the Saturn V rocket, but then also had to make the Saturn V reusable,” one former Blue Origin employee said.

Instead of crawl-walk-run, Bezos asked his engineering team to begin sprinting toward the launch pad. The engineering challenges of building such a large rocket are big enough. But because New Glenn is so expensive to build, the company needs to recover it from the outset. SpaceX enjoyed a learning curve with the Falcon 9, only successfully recovering the first stage on the rocket’s 20th launch. Blue Origin engineers will be expected to bring New Glenn back safely on its very first mission.

The decision to skip the “walk” part of the company’s development has cost Blue Origin dearly, sources say. The company’s engineering teams, composed of smart and talented people, are struggling with mighty technical challenges. And there are only so many lessons that can be learned from New Shepard—the smaller rocket has 110,000 pounds of thrust, and New Glenn will have very nearly 4 million.

While I am certain there is some truth to this, the article also appears to me to be a sales job for Bob Smith, the CEO that Bezos hired in 2017 to run Blue Origin. There have been many rumors that he takes a more traditional approach to rocket development, which means no failures can be allowed and must be designed out from the beginning. In fact, the article hints at this, but then spins it to Smith’s favor.

Since Smith arrived in the fall of 2017, some employees have struggled with his leadership style and complained that he has acted too slowly, pushing Blue Origin to become more like a traditional aerospace company than a nimble new-space startup. But from Smith’s perspective, he’s trying to implement a culture transformation, from a hobby-shop atmosphere to that of a major aerospace contractor that can go out and win major NASA and Defense Department contracts.

The history of the past five years confirms the employees’ perspective, not Smith’s. Before he arrived Blue Origin was getting things built and launched, at a fast pace. After he took over that pace slowed to crawl, in all its projects.

In fact, I would say that Blue Origin’s problems really come as much from Smith as Bezos. When Bezos might have pushed to go big with New Glenn, Smith should have pushed back, and insisted they build the smaller version first. Instead, he went ahead, while also apparently changing the company so that it functioned more like the older big space contractors (Boeing, Lockheed Martin) that can’t get anything built quickly for a reasonable cost.

None of this bodes well for Blue Origin or New Glenn. Unless a massive management change is instituted, the company’s future does not look as bright as it should, considering the amount of money (billions) that Bezos is committing to it. All the money in the world will do you nothing if what you want to do is poorly planned and badly executed.

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First launch of Blue Origin’s orbital rocket delayed to ’22

3:48 pm

Capitalism in space: In what had increasingly appeared likely in recent months, Blue Origin today announced that it is delaying the first launch of its orbital New Glenn rocket from late this year to sometime in ’22.

Blue Origin noted that the updated timeline follows the U.S. Space Force to stop its support for the New Glenn development effort as part of its procurement program for national security launches. That support, which could have added up to $500 million, was closed out at the end of last year.

The Space Force ended up choosing United Launch Alliance and SpaceX for the next round of national security launches. Jarrett Jones, Blue Origin’s senior vice president for New Glenn, told Space News that losing out on that round of launch contracts represented a $3 billion hit to anticipated revenue, and forced the company to “re-baseline” its development plans.

Personally I think this excuse is absurd. Jeff Bezos has been investing about $1 billion per year in Blue Origin. Moreover, in its announcement the company claimed it has invested $2.5 billion of that money in developing New Glenn. This is almost as much as SpaceX has raised to build Starship/Super Heavy, which is in development and in only about two years has already produced multiple prototypes and two test flights. Moreover, SpaceX developed Falcon Heavy for about a half billion dollars, and did it in less than seven years.

New Glenn has been in development for more than four years, and we have yet to even see it assembled in any form at all. The loss of that government military contract should have made no difference if Jeff Bezos and Blue Origin were really serious about building this rocket. He has given the company more than enough investment capital to get it done. They have just not delivered so far.

If I was Bezos, I would be taking a very hard look at the management at Blue Origin, with the intent to make some significant changes.

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Jeff Bezos to step down as Amazon CEO

4:01 pm

Capitalism in space: Jeff Bezos announced today that he is stepping down as Amazon CEO to focus his efforts more on his other political and space-related activities.

From the email he sent to Amazon employees:

As Exec Chair I will stay engaged in important Amazon initiatives but also have the time and energy I need to focus on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Post, and my other passions,” Bezos wrote. “I’ve never had more energy, and this isn’t about retiring. I’m super passionate about the impact I think these organizations can have

I think this quote from the story above however explains a great deal about Blue Origin in the past three years:

Bezos is said to devote one day a week to Blue Origin (reportedly, Wednesdays), plus at least $1 billion worth of the annual proceeds from his sales of Amazon shares. He’s presided over high-profile publicity events including the unveiling of the Blue Moon lunar lander. But when it comes to the day-to-day business, he handed that responsibility over to veteran aerospace executive Bob Smith, who became Blue Origin’s CEO in 2017.

It was around 2017 that the pace of Blue Origin’s effort seemed to slow to a crawl. It was also about that time that the company became dedicated to becoming a government contractor, doing whatever the government required even if it meant that development of their New Glenn rocket would slow (which it did).

Whether this action will increase Bezos’ participation with Blue Origin however is unclear. In the last year he has seemed more interested in leftist environmental causes and leftist politics. We shall have to wait and see.

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Bezos sells another $3 billion of Amazon shares

8:54 am

Jeff Bezos continues to accelerate his sale of his Amazon stock, selling another $3 billion this week.

In August, Bezos offloaded more than $3.1 billion of Amazon shares, after selling more than $4.1 billion worth of shares in February. The sales this week bring his total cash out in 2020 to more than $10.2 billion so far, which is a notable jump from 2019, when Bezos sold $2.8 billion worth of shares.

While Bezos had originally said these sales were for financing his space company, Blue Origin, it now appears that the bulk of this new money is aimed at funding environmental political organizations such as the Environmental Defense Fund, the Natural Resources Defense Council and the World Wildlife Fund.

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Jeff Bezos sells $3 billion more in Amazon stock

9:23 am

Jeff Bezos this week sold another $3 billion in his Amazon stock, bringing the sales this year along to more than $7 billion.

Amazon stock has soared since mid-March as millions of customers rely on the e-commerce giant amid the pandemic for online shopping, cloud computing, and more. Last week the company posted $88.9 billion in revenue, up 40% from the year-ago quarter, with profits far ahead of Wall Street expectations at $5.2 billion.

Bezos said in 2017 that he was selling $1 billion a year to fund his Blue Origin space venture, but he has been increasing the size and frequency of the stock sales. He sold $2.8 billion worth of Amazon stock a year ago, and around $4 billion earlier this year.

Since 2017 Bezos has now raised more than $11 billion from sales of his Amazon stock. Initially he had said such sales were to finance his space company Blue Origin, but more recently he has indicated he wants to use the bulk of this cash to fight climate change, with portions also devoted services for the homeless and early childhood education.

In fact, it appears that Blue Origin is likely getting only a very small portion of this money, though at several billion this isn’t chicken-feed. At a minimum it likely matches what SpaceX has raised through private investment capital for its Starship/Starlink projects, and more likely exceeds it.

Yet, SpaceX continues to outpace Blue Origin, several times over. If anything, as the cash from Bezos has rolled in Blue Origin’s pace of test flights with New Shepard as well as the development of its BE-4 rocket engine and New Glenn orbital rocket seemed have slowed. Initially New Glenn was going to make its first orbital launch this year. Now they say it will launch next year but we hear little about any development progress. And the company only delivered a test engine of the BE-4 (not flight worthy) to ULA only about a month ago, far later than first promised.

Though the lack of news could simply be Blue Origin’s more secretive way of doing things, compared to SpaceX, I have my doubts. Rockets are big things, and building and testing them is not something easily kept under wraps, especially by private companies. The lack of news from Blue Origin continues to suggest that simply having lots of money does not necessarily guarantee success.

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Bezos’ Feb Amazon stock sale earned $3.4 billion, not $1.8 billion

12:04 pm

In early February Jeff Bezos sold of 3% of his Amazon stock, almost twice what had been reported at the time, earning him $3.4 billion not $1.8 billion.

This information is part of an overall sell-off in early February by the top executives of many U.S. companies, totaling $9.2 billion.

While Mr. Bezos’s sales accounted for more than a third of the 2020 sales, thousands of other insiders sold stock. More than 150 executives and officers individually sold at least $1 million worth of stock in February and March after having sold no stock in the previous 12 months, the Journal analysis found.

Wall Street executives also sold large dollar amounts, including Laurence Fink, CEO of BlackRock Inc., who sold $25 million of his company shares on Feb. 14, pre-empting potential losses of more than $9.3 million and Lance Uggla, CEO of IHS Markit Ltd., a data and analytics firm, who sold $47 million of his shares around Feb. 19. Those shares would have dropped in value by $19.2 million if Mr. Uggla had retained them. A spokesperson said the shares were sold under a preset plan.

These early February sell offs are in addition to the sudden sales of stock by four Senators, all conveniently timed to beat the crash that has since occurred.

If I was a cynic I would say they got inside information from their buddies in Congress and the state governments, telling them that the government was going to shut down the economy because of COVID-19, and you better sell.

If I was a fool I’d say that can’t be, these people are all upfront and honest, especially those in Congress. They would never work with the big stockholders on Wall Street to manipulate stocks so those stockholders could make a killing. Never!

Meanwhile, Bezos’ stock sale now gives him a total of $8.2 billion in cash from all his stock sales since 2017. While he has said this money was intended to support his space company Blue Origin, he has also said he wants to spend $10 billion on “climate change.”

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Jeff Bezos to spend $10 billion on “climate change”

9:01 am

Jeff Bezos yesterday announced that he plans to spend $10 billion of his own money on “climate change,” awarding grants to “scientists, activists and nonprofits.”

“I want to work alongside others both to amplify known ways and to explore new ways of fighting the devastating impact of climate change,” Bezos said in the post.

I wonder if has any idea what he means by “climate change.” From this and other quotes, I would guess he does not. Instead, it appears his knowledge of the climate field is similar to most leftist politicians and activists, superficial and based on slogans and soundbite claims.

Meanwhile, this story suggests that a good portion of the $4.6 billion he has gotten by cashing out his Amazon stock in the past few years will go to this initiative, rather than his space company Blue Origin.

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Bezos sells another $1.8 billion in Amazon stock

9:56 am

Capitalism in space: This past week Amazon CEO Jeff Bezos sold more than $1.8 billion of his Amazon stock, apparently as part of his continuing effort to fund his space company Blue Origin in the development of its suborbital New Shepard spacecraft, its New Glenn orbital rocket, and its Blue Moon lunar lander.

In 2017 Bezos had said he would sell off about a billion dollars per year to fund Blue Origin. However, a survey of these stock sales suggests he has upped that figured considerably, with higher sales more frequently. His first big stock sale was in May 2017 for $1 billion. The second was in November 2017 for another billion. Then in August 2018 Bezos did two stock sell-offs within a week of each other, totaling $2.8 billion.

Now, in February 2020, he has raised another $1.8 billion by selling his Amazon stock. All told, he has raised $6.6 billion in cash in just three years. According to him, all of it is supposedly for Blue Origin, though there is no public information to confirm this.

With that much cash, Bezos’s Blue Origin is likely the best funded space company in the world, and should have enough capital to build almost anything it wants.

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Bezos sells another $1.8 billion in Amazon stock

10:41 am

Capitalism in space? Jeff Bezos last night sold just under a million shares of his Amazon stock, earning in cash an estimated $1.8 billion.

Unlike a similar sale of stock by Bezos last April, there is no statement from Bezos about what he intends to use the money for. Then Bezos made it clear that he intended to periodically sell his stock to raise money for Blue Origin and its various space ventures. Today’s sale was the third since he said this, with total earnings from all three sales totaling about $4 billion, and all are likely aimed at funding that space company.

I might have increasing concerns about Blue Origin because of what appears to be a stalled rollout of New Shepard and New Glenn, but with deep pockets such as this, it would be surprising if the company fails to achieve its goals.

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Blue Origin unveils proposed lunar lander

9:42 pm

Capitalism in space: Jeff Bezos, the CEO of Blue Origin, today unveiled his company’s proposed lunar lander, dubbed Blue Moon, that Bezos claims will land on the Moon by 2024.

It harnesses many of the same ‘propulsion, precision guidance, vertical landing and landing gear systems’ utilized by New Shepard, Blue Origin’s rocket meant to ferry humans to the moon. The craft is equipped with fuel cells to provide ‘kilowatts of power’ that are capable of lasting for long-distance missions. Once Blue Moon arrives at its destination, it uses machine learning algorithms to land with precision on the lunar surface.

Blue Moon can deliver several metric tons of payload to the moon, thanks to its top deck and lower bays, the latter of which will allow for ‘closer access to the lunar surface and off-loading,’ the firm said.

With this technology, Blue Origin hopes it will prepare us to be able to send humans back to the moon as soon as 2024.

The article also mentions a new rocket engine that Bezos said Blue Origin is developing, called the BE-7, specifically designed for these lunar landers.

Blue Origin is clearly lobbying to get the job of building the lunar landers NASA needs and has said it will buy from the private sector. And its New Shepard reusable suborbital craft, with a booster that has successfully landed vertically now eleven times, shows that it understands this technology.

Nonetheless, I must admit that Bezos is beginning to remind me of Richard Branson, big with promises but late on delivery. New Shepard was going to start flying humans in 2017, then 2018, now this year. New Glenn was supposed to fly by 2020. They have now delayed that until 2021. Development of the BE-4 engine that Blue Origin wants to use in New Glenn and also sell to ULA for its Vulcan rocket seems to have stalled. The last update on its status was more than a year ago, which was also about the time of the last mention of any engine tests. They could be keeping things quiet, but I wonder. At that time they appeared close to certifying the engine for flight. They have never announced that this has happened, though ULA subsequently did choose the engine for Vulcan.

In fact, in writing the last paragraph and reviewing my posts on Behind the Black, I realized that there has been little or no press for the past year on either New Glenn or BE-4. I wonder why. I can’t imagine any reason at all for not announcing the engine’s certification as operational, yet no such announcement has ever been made.

Anyway, if Blue Origin delivers on today’s hyped-up press announcement, it will be very exciting. He definitely is pushing the right buttons for getting the government work from NASA.

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Bezos sells another $1 billion in Amazon stock to fund Blue Origin

9:33 am

Capitalism in space: Repeating a stock sale he did in May, Jeff Bezos this week sold another million shares of his Amazon stock to raise another $1.1 billion in cash to finance his Blue Origin rocket company.

The stock sale reduced his holdings in Amazon by 1.3% to 16.4% total.

With this much cash available, Bezos has the luxury of developing and building his business with no help from the government and completely free to do whatever he wants. This freedom puts him in a very enviable position.

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Bezos sells about $1 billion of his Amazon shares

8:39 am

Capitalism in space: This past week Amazon CEO Jeff Bezos raised about $1 billion in cash by selling 1 million shares of his stock in Amazon.

Amazon.com Inc. Chief Executive Officer Jeff Bezos sold about $1 billion in company stock as part of a planned divestiture, a month after the world’s third-richest man said he spends about that amount annually on his space exploration company Blue Origin LLC.

Bezos sold 1 million shares from Tuesday to Thursday ranging in price from about $935 to $950 per share, according to a regulatory filing on Thursday. He still owns 79.9 million shares, or about 17 percent of the company, down from 83 million shares at the end of 2015.

What this means for Blue Origin is that Bezos has very deep pockets, and will likely be able to finance the development of its very big New Glenn rocket without outside help. That the company will likely also win contracts along the way for the company’s BE-4 rocket engine will also not hurt Bezos’ financial position.

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Suborbital promises

7:49 am

Capitalism in space: Two stories today highlight the contrasts that presently exist within the still unborn suborbital tourist industry:

In the first, Richard Branson made another one of his bold predictions, the same kind of prediction he has been making about Virgin Galactic now for almost a decade. Again and again he claims, based on nothing, that his spaceship will be carrying people into orbit in mere months. It never happens. It won’t happen here.

In the second, Jeff Bezos announces that he hopes to fly people on his New Shepard suborbital spacecraft by 2018, but at the same time he also announces that the program is delayed.

Bezos, speaking in front of the company’s exhibit at the 33rd Space Symposium here that features the New Shepard propulsion module that flew five suborbital spaceflights in 2015 and 2016, backed away from earlier statements that called for flying people on test flights later this year. “We’re going to go through the test program, and we’ll put humans on it when we’re happy,” he said. “I don’t think it’s going to be 2017 at this point. It could be.”

Bezos has been very careful, from the beginning, to make no bold or specific predictions about when his spacecraft will fly manned. Here, he is once again making it clear that any previously announced schedules were very tentative, and should not be taken too seriously.

Which person would you trust with your life on a suborbital flight?

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Billionaires propose big space plans

9:00 am

At separate interviews given during a media conference held this week in California, Elon Musk and Jeff Bezos each expressed their thoughts about what they hope to accomplish in space over the next few decades.

First, Jeff Bezos outlined his belief that, in order to protect the Earth, humanity is going to have to eventually move its heavy manufacturing off the planet and into space. He thought colonizing the planets was a cool idea, but his focus remained with Earth, and using space as a way to protect it.

Musk meanwhile revealed his company’s long range plans for Mars, including their firm intention to send a Dragon capsule to the red planet during every future launch opportunity, beginning with 2018. Each mission will provide information needed to improve and develop their engineering so that they can hopefully send humans there by 2024.

A realistic appraisal of both men’s proposals will quickly recognize that they are probably overly optimistic. Bezos might be right that we should move our heavy industries into space, but he is not realistic to think this can happen soon, or is even possible. Musk’s company SpaceX might be laying the groundwork for the eventual colonization of Mars, but to think it will begin happening by 2024 is unrealistic.

Still, what both men are proposing are things that they are personally helping to make happen. Neither man has to get anyone else’s permission or approval to push these dreams. All they need to do is make sure the products they are building for accomplishing these tasks can also make money by providing services to others. Since this is exactly what both men are doing, they will likely achieve far more than anyone can imagine, even if the specific proposals they are putting forth now do not happen in their lifetimes.

This bright and very possible future is far different than the powerpoint proposals that NASA and big government have offered to us over and over again for the past four decades. Those ideas, while also ambitious, could never happen because they were dependent on the approval of too many other players, Congress, the public, the press, the bureaucracy. They were not founded on profits, so they became a drain on the economy instead of a source of wealth. The result was that we have gone nowhere and developed little new space technology in the years since the last Apollo landing.

Only now, with our renewed reliance on capitalism and profits, are we finally beginning to see the dreams expressed in those NASA powerpoint proposals coming to life. And it isn’t the government that is making them happen, but free individuals, with big dreams and the will to pursue them.

Expect there to be privately funded manned missions to Mars in the next decade. And expect there to be factories in orbit, far sooner than anyone expects.

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Jeff Bezos gives a tour of Blue Origin

8:56 am

The competition heats up: Jeff Bezos gave his first tour of Blue Origin’s facilities for eleven journalists on Tuesday.

The article is chock full of interesting details about the company’s plans. To me these details about their New Shepard test program are the most interesting:

“We’re going to fly it until we lose it,” he said. The plan is to test the spaceship many, many times without humans aboard. At some point, Blue Origin will run a test in which the crew capsule will have to blast itself clear from the propulsion module at maximum dynamic pressure – a scenario during which the propulsion module will almost certainly be destroyed.

Not to worry, though: More crew capsules and propulsion modules are already under construction at the factory. “By the time anybody gets on, I think you should be willing to bring your mom,” Bezos said.

They also hope that this test program will proceed to launching humans by 2017.

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Bezos gives museum recovered Saturn V engines

6:51 pm

Jeff Bezos today personally delivered to the Seattle Musuem of Flight the restored remains of two Apollo Saturn V engines that his company recovered from the ocean floor in 2013.

Over the course of two and a half years, the experts at the museum worked to stabilize the F-1 engine parts, halting the corrosion caused by the salt water. The engines were not restored, however. Rather they were conserved in their “as found” condition to preserve their full history, from the sky to the sea.

In the process, the Cosmosphere was able to reveal and research the parts’ serial numbers and identify the flight history for most of the large parts. The conservators were able to tie the components to the Apollo 11 and Apollo 12 missions in 1969 and to Apollo 16 in 1972.

The Apollo 11 components will be donated to the Smithsonian National Air and Space Museum in Washington.

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Next New Shepard test flight expected before December

9:21 am

The competition heats up: Blue Origins has revealed that the next test flight of its suborbital New Shepard capsule and launch rocket will take place before the end of 2015.

They also noted that they will not be selling any tickets for suborbital flights for at least two more years, until they are satisfied that the test flights have proven the system. This is a far cry from other suborbital companies like Virgin Galactic and XCOR, who have made big promises to garner ticket sales, and have yet to deliver. Jeff Bezos’s company has instead decided to deliver first, and then sell tickets.

In the end, we shall see who wins the race to put the first tourists into space. What is certain in all this however is that Virgin Galactic has squandered the ten-year headstart it had when it started out in 2004.

In related news, Virgin Galactic says that construction of its second SpaceShipTwo ship is progressing well.

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Blue Origin announces it will launch from Florida

9:34 am

The competition heats up: In a press conference today, Jeff Bezos of Blue Origin announced that his company will be making Cape Canaveral, Florida, its launchpad for their planned commercial orbital spacecraft.

Not only will they launch from a former Air Force launch complex, they will be building their production facility there for assembling their reusable ships. Bezos also said that they hope to be flying by the end of the decade.

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Jeff Bezos reveals some details about the goals of his space company, Blue Origin.

7:17 pm

The competition heats up: Jeff Bezos reveals some details about the goals of his space company, Blue Origin.

Blue Origin is now working on its third version of the New Shepard, which is designed to take everyday people on suborbital journeys. Bezos said that he’s hopeful that this will be the last iteration, and he wants to see the next vehicle ready for commercial operation. “I’m very optimistic about that,” he said. Bezos didn’t give any specific timetables. However, he did say that Blue Origin’s orbital vehicle, designed to send astronauts to the International Space Station and elsewhere, will be tested by 2018. Eventually, the goal is to let anyone fly up into space safely at reasonable prices.

Not a lot of details, but previously we knew practically nothing. That the present ship is being designed for suborbital tourist flights makes it a direct competitor of Virgin Galactic and XCOR. And considering the problems that Virgin Galactic has with SpaceShipTwo, and that XCOR doesn’t have the big bucks of Bezos, Blue Origin might actually be in the lead in the race to put the first tourists in space.

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