Tag: World View

High altitude balloon company World View will not go public

10:18 am

The high altitude balloon company World View has ended its negotiations, begun early this year, with a venture capital investment firm to merge and make its stock public.

In a Nov. 17 statement, World View and Leo Holdings Corp II announced they were canceling plans announced in January to merge. The decision to end the merger was mutual, the companies said.

The companies did not give a specific reason for calling off the deal. “Over the course of 2023, World View received strong interest from potential investors,” the companies stated. “However, given challenging market conditions, World View and Leo jointly determined that it was the best course of action at this time to not proceed with their previously announced transaction.”

There could be a lot of good and bad reasons this deal fell through. Mostly likely World View officials saw the generally negative consequences experienced by other space startups that went public in this manner in the past few years, and decided it better to hold off.

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Indian company joins the high altitude balloon tourist race

9:23 am

A new company from India, Space Aura, is proposing to fly tourists on a high altitude balloon by 2025, joining the global competition that already includes two American balloon companies as well as one Spanish company.

Space Aura’s capsule, christened prototype SKAP1, will be tethered to a high performance ‘space balloon system’, complete with an enormous parachute. The capsule will accommodate six tourists and one pilot with ample leg room and comfortable walking space. It will be pressurised during flight and will have environmental control and life support systems that maintain oxygen, pressure, and temperature levels.

Even though passengers will not experience microgravity, they would still need to prepare before flying. Prior to the launch, which will be from Karnataka, Maharashtra, or Madhya Pradesh, the group of space tourists will undergo a week of basic physical training. The duration of the entire flight is expected to be about 5.5 to 6 hours. Tourists will ascend for about 90 minutes, spend an hour gazing out at the earth below, and begin their 90-minute descent with the balloon and parachute.

The two American companies, Space Perspective and World View, claim they will be flying tourists by 2024, while the Spanish company, Halo Space, is targeting 2025.

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World View gets new lease from Pima County

9:54 am

Because the original lease was ruled unconstitutional under the Arizona state constitution, Pima County yesterday approved a new lease for the high altitude balloon company World View.

The original deal had the county build the building. World View would lease it for 20 years, guarantee employment of 400 people, and then buy the facility for $10 at the end of the lease. This was ruled unconstitutional.

Lesher said [the new lease] will give the county more flexibility and a safeguard when it comes to those terms and they’ll be able to base the appraisal price on a percentage of the fair market value. Another big change – the employee benchmark has been significantly lowered. In the original contract, World View was required to hire 400 workers, now that’s down to 125.

Until more details are provided, it is unclear what has changed to make the new deal acceptable to the courts. I suspect the big change is that World View will not have an option to buy for $10.

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Arizona court kills local government’s real estate deal for World View

10:19 am

The Arizona court of appeals last month ruled that a land deal between Pima County and the high altitude balloon company World View was unconstitutional, and could not go forward.

Per the agreement, the county would fund the construction of facilities, including a 135,000-square-foot manufacturing facility, with office spaces and a launch pad, on property it already owned. World View would then lease the property from the county for 20 years. In return, the company would hire more than 400 employees, with an average salary of over $55,000, and spend $32.3 million on equipment.

Twenty years of lease payments were expected to total around $14 million, estimated to be the property’s value at that time. World View would then have the option to buy the facility for $10.

Six years ago the Goldwater Institute sued, saying this deal was illegal according to the state’s constitution. Last month the court agreed, killing the deal.

Since World View remains in operation in these facilities, Pima County will have to renegotiate at market rates. How that will effect the company itself, which now hopes to begin flying near-space tourist flights by 2024, charging $50K per person, remains unknown.

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China a major investor in World View

8:39 am

It appears that one of the major financial backers of the Arizona-based high-altitude balloon company World View is a Chinese investment company with close ties to the Chinese Communist Party.

World View’s long-time investors include Tencent Holdings, a Chinese tech company that operates the WeChat messaging and social media service that is among the world’s largest. And like other tech companies in China, it has close working ties to the ruling Communist Party in Beijing. Tencent has sought to expand its relations with American tech firms, a move that has raised national security concerns that the Chinese government could be surreptitiously gathering information using American technology.

Hartman [World View CEO] said that isn’t happening, noting the Pentagon’s Defense Counterintelligence Security Agency examined the company last year to ensure its work was secure from foreign interference. The agency cleared World View to handle work for the military.

Tencent has “zero access, zero input and zero control,” Hartman said.

The article at the link is focused mostly on the Democratic candidate for the Senate in Arizona, Mark Kelly, and his ties to World View with its Chinese investor. To my mind the World View links are more important, as World View under Hartman has been selling its high altitude balloons as a way to do military surveillance and reconnaissance at less cost and with more flexibility than with satellites.

Getting investment capital from China means that, despite Hartman’s reassurances, China will likely get access to this technology, either to use in its own country, or maybe even use surreptitiously in the U.S., inside a World View balloon.

As much as I really would like to see World View succeed, as long as they rely on Chinese money they should be denied any military contracts. And Kelly’s involvement as a co-founder of the company, without raising this issue himself, does suggest his focus on protecting the U.S. from foreign influence and spying is quite weak. It does indicate that he can be brought, from the highest bidder, whoever that bidder might be.

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World View crashes?

8:44 am

Capitalism in space: The hi-tech high-altitude balloon company World View has failed to meet its commitments in its local development deal and has changed leadership.

Pima County’s supervisors approved a ballsy deal with World View amid fanfare, criticism and a ginned-up lawsuit the county won. The county would build World View a headquarters and a launch pad for the balloons. The company would pay rent on the facilities and repay the county for its end, plus a guarantee of escalating its local workforce to 100 by the end of 2018, 200 by 2022 and 400 by 2032.

Three years on, there’s been a catastrophic explosion and a leadership change as World View’s promise of “Jobs!” Jobs! Jobs!” has turned into “eh … jobs …” The company has a staff of 87. That’s 13 fewer than what was promised in the contract. Because World View refused to make public its internal growth projections, the county approved the deal after its own study predicted the company would hire pushing 400 workers by now.

The company had started out casting itself as a tourist operation, offering people multi-hour high-altitude flights for far less than the suborbital rocket companies. In 2017 the company quietly shifted its marketing, touting its balloon technology instead as a way to do high altitude research and reconnaissance. Soon thereafter they had an explosion during a test flight.

Since then they have apparently done little. With the recent corporate restructuring I wonder at the company’s future.

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World View launches first balloon flight since explosion, raises $26.5 million

8:45 am

Capitalism in space: World View today launched its first Stratollite balloon flight since one exploded on December 19 as it was being prepared for launch.

The flight was commissioned by the NASA Flight Opportunities program office for two principal customers, the NASA Ames Research Center and Space Environment Technologies, both of which are studying radiation detection and its energy levels at different altitudes. The balloon vehicle is expected to gather data and stay aloft for less than 24 hours, depending on winds and landing conditions, a World View spokesman said.

More important, the company announced that it had raised $26.5 million in investment capital. All told, it is estimated that the company has raised $48.5 million in three rounds of fund-raising.

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World View balloon explodes

9:42 am

Capitalism in space: A World View balloon exploded at its launch facility in Tucson yesterday.

No injuries were caused when a large, tethered test balloon ruptured as crews deconstructed it after a successful ground test to fill the balloon, World View spokesman Andrew Antonio said. The rupture resulted in a loud sound heard in the area, and a small fire on the balloon, he said. “We have reached out to reassure our immediate neighbors,” Antonio said. “There were no injuries and only superficial facility damage at the site.”

World View says it can use either helium or hydrogen gas to fill its stratospheric balloons but has initially been using hydrogen, which company officials have said is safe when handled properly.

World View also released its first images from a Stratollite balloon flight yesterday.

I think the second link demonstrates clearly that Stratollite is a good concept for high altitude reconnaissance. I think the first link demonstrates that hydrogen is still problematic for high altitude balloons.

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Arizona’s Court of Appeals sides with Pima County on space balloon deal

9:48 am

Arizona’s second highest court has agreed with Pima County and approved a deal the county made, without competitive bidding, with the space balloon company World View.

In a unanimous ruling, the three-judge panel acknowledged the purpose of competitive bids is to ensure that the county — and, by extension, the taxpayers — gets the most money for the property. But Judge Peter Eckerstrom, writing for the court, said that does not apply when the real goal is not immediate income but longer-term economic development.

The Goldwater Institute, which brought the suit that claimed that the deal violated the state constitution because the lease was signed without competitive bidding, has said it will appeal to Arizona’s Supreme Court.

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Stratollite completes five day balloon test flight

3:48 pm

Capitalism in space: World View’s first test flight of its stratollite high altitude balloon out of its Tucson launch site has successfully achieved a five day mission.

The vehicle hovered between 55,000 and 75,000 feet, while successfully testing out equipment designed to steer the balloon and keep it relatively stable at the same spot. Onboard were a 50.6-megapixel Canon EOS 5DS camera to do Earth observations, as well as communications equipment from the US military’s Southern Command. The military is interested in using the stratollite to look for human and drug trafficking, as well as maritime piracy.

World View says it’s going to bring down the stratollite sometime today, after hitting all of its critical milestones. “This is an enormous leap in our development program and we are certain the stratollite is going to forge a new path in how we observe, react to and collect data about our planet,” Jane Poynter, CEO of World View, said in a statement.

It is pretty clear that World View has shifted its focus from high altitude tourist flights in a balloon to high altitude reconnaissance and research flights, suggesting that they found the customer demand for the tourist flights at $75,000 each to be weak.

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World View test balloon flight cut short due to leak

9:10 pm

The first test flight of World View’s Stratollite balloon, planned for 4 days, was ended after only 17 hours because of a leak in the balloon.

Though the mission was the longest yet for the balloon, and though they managed to test the attitude control, communications, and solar power systems, they need to find out why the balloon did not hold pressure as expected before they can begin flying missions lasting from months to even a year.

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World View launches chicken sandwich in test ballon flight

5:26 pm

Capitalism in space: The first test flight of World View’s stratospheric balloon has begun, carrying with it as well a KFC chicken sandwich.

The sandwich is scheduled to remain aloft for four days and maintain an altitude of about 50,000 to 80,000 feet (15,200 to 24,400 meters). During the flight, which is serving as an advertising campaign for Kentucky Fried Chicken (KFC), the company will execute various activities to engage the public over social media, including a coupon drop, in which a coupon will literally be dropped from the balloon down to Earth. “The team on the ground here is justifiably celebrating as they watch their months of hard work pay off,” the video announcer said. “This is the greatest achievement in chicken sandwich space travel history. In all my years in this business I’ve certainly never seen anything like it. What a time to be alive.”

The Zinger-1 mission will serve as a test flight for World View, which aims to make stratospheric balloons that can remain in flight for months at a time. The flight is scheduled to be the first “extended-duration development flight of [World View’s] high-altitude Stratollite vehicle,” according to a statement from the company.

The chicken sandwich stuff is pure pr, and completely silly. It helped pay for the mission, however, which is not so silly.

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KFC pays to put chicken sandwich on four day World View shakedown flight

5:41 pm

Capitalism in space: A publicity stunt by Kentucky Fried Chicken to sell a new chicken sandwich will help pay for the the first long shakedown of World View’s Stratollite balloon.

For World View Enterprises, the flight is expected to serve as a four-day shakedown cruise for its “Stratollite” system, which could eventually send military and commercial imaging payloads to the edge of the atmosphere for months at a time. “When KFC first brought this to us, we had a good chuckle,” World View CEO Jane Poynter told reporters during a teleconference today. But then the Arizona-based company realized there could be a serious point behind the project. “If you can fly a chicken sandwich to the edge of space … you can fly really just about anything,” Poynter said.

Besides, the payment that KFC is providing for the publicity will cover the cost of the test flight, including the expense of beaming down live HD video from a height of 60,000 to 75,000 feet, Poynter said.

Neither she nor KFC brand communications director George Felix would say precisely how much the fast-food chain is paying, but Felix said “we’re fully confident that this is going to be worth every penny.” For reference, NASA has paid World View as much as $440,000 for balloon test flights.

What is interesting to me is how World View appears to have significantly backed off its effort to sell and fly tourists on a balloon.

When World View was founded in 2013, the company’s main objective was to provide hours-long tours to the stratosphere in a pressurized Voyager capsule for $75,000 a ticket. Since then, World View has pivoted to the Stratollite concept, but it still intends to fly people someday. “We’re actually making huge progress,” Poynter said.

Poynter is no longer giving out a timetable for the start of Voyager tours, but she said two more Stratollite missions are scheduled for this summer. MacCallum, who is Poynter’s husband, said a full-scale mass simulator for the Voyager capsule is due to be flown by the end of the year.

All in all, the suborbital space tourism business appears, at least for now, to be fading, overwhelmed by the new and growing orbital launch industry.

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Democrats in Pima County vote to appeal World View court decision

8:39 am

The Pima County Board of Supervisors in Arizona has voted 3-2 on a party-line vote to appeal a judge’s decision that canceled the county’s deal with the space tourism balloon company World View because it violated state law.

The Pima County Board of Supervisors voted 3-2 to appeal a Superior Court decision which concluded the county violated state law when it signed an agreement and lease with World View, a space exploration company located near the Tucson International Airport.

The vote was along party lines, with the three Democrats voting for the appeal and the two Republicans voting against it.

The court ruled the county did not comply with a law which requires the county to appraise the property, hold a public auction, and negotiate a fair rental price before it agreed to build a $15 million complex for the company.

It seems to me that — rather than fight this in court — the smart thing to do here is to work out a new agreement that does not violate the law, something that the county was able to do with its lease agreements with Vector Space Systems. This apparently was what the Republicans on the board were proposing. Instead, the Democrats have chosen to fight, even though that will delay things further and is likely to fail in court anyway.

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Judge strikes down Tucson/Worldview spaceport deal

8:40 am

A deal between Pima County in Tucson Arizona and the space tourism balloon company World View has been struck down.

The Tucson judge sided with the libertarian Goldwater group, which argued Pima County ran afoul of state rules governing subsidies and incentives to businesses. “Judge Woods’ ruling protects Pima County taxpayers from having to foot the bill for World View’s untested business model,” said Jim Manley, senior attorney at the Goldwater Institute. “Instead of relying on a sweetheart deal from taxpayers, World View will need to pay market rates to lease its building, just like every other business in Pima County.”

Goldwater attorneys didn’t like that Pima County approved the deal without a popular ballot measure and that the deal was done without an appraisal. Goldwater also argued the lease deal was for less than market rates for a custom building. “The county is free to renegotiate the lease,” said Manley, “but only after they appraise the building, hold a public auction, and lease the building to the highest bidder. All of that will protect taxpayers from illegally subsidizing a private business.”

As much as I want this business to thrive, I think the Goldwater Institute was right. Pima County violated numerous laws and even some parts of the state constitution putting together this deal. Even if there was no corruption here, it opened the door to future backroom corruption if the deal was allowed. Now, I expect World View and the county will have to renegotiate.

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Why the Goldwater Institute sued to block Tucson space deal

9:39 am

Link here.

The fundamental reason is that the Institute believes that, in signing its deal with World View to build its headquarters and launch site in Tucson, Pima County violated several laws as well as Arizona’s constitution. We are supposed to be a nation of laws, and thus government officials should not be allowed to violate those laws, even if they have the best of intentions.

I must say that, though I have no doubt that putting World Views space tourism balloon company in Tucson would be financially good for the city and Arizona, allowing elected officials to break the law to make deals with private companies is a very bad way to do it, and will in the end lead to far worse consequences.

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Pima county files motion to dismiss World View lawsuit

8:49 am

In the heat of competition: The Arizona county government that made a deal with the space tourism balloon company World View to help them build their launch facilities in Tucson has filed a motion to dismiss the lawsuit by the Goldwater Institute that claims the deal is illegal.

I don’t know if the deal was illegal, but I suspect that even if it was the county will win and the deal will go through. Too much money at stake.

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Money for space

9:35 am

The competition heats up: Three stories today about investors putting money into different space related business ventures are worth consolidating into one post, as they all indicate the same thing.

The first story involves a takeover by SES of the O3b satellite constellation that provides internet service globally. They already have 12 satellites in orbit, and have plans to launch 8 more by 2019. A partial list of their customers (Digicel Pacific, Royal Caribbean Cruise Lines, American Samoa Telecom, Speedcast, Rignet, Bharti International (Airtel), Timor Telecom, CNT Ecuador, Entel Chile and NOAA) illustrates the solidity of the company’s success, which is also why SES is spending $20 million to own it.

In the second two stories we find investment capital being committed for two different and unusual space-tourism-related companies. World View plans to launch high altitude balloons with passengers, taking them up 20 to 30 miles for a several hour journey on the edge of space. That they have secured an additional $15 million in investment even as their deal with the city of Tucson is being challenged in court indicates the confidence the investors have in their business.

SpaceVR is even more interesting. They plan to launch smallsats with cameras providing a 360 degree view, and link them to virtual reality headsets here on Earth. Consumers will then be able to experience being in space, without actually going. Though the press release does not specific how the product will be sold, it suggests that they are aiming for the education and museum market.

All three stories prove that the modern investment community, normally very adverse to high risk endeavors, is increasingly finding that the financial benefits of space travel and anything related to it are worth the financial risks. This fact can only lead to good things for the eventual development and exploration of space.

Moreover, the third story once again demonstrates the value of reducing the cost to get into orbit. SpaceVR’s idea is a very good one, but it couldn’t have happened before SpaceX forced a reduction in launch prices. Beforehand, no one could have afforded to buy the product because of the high cost to launch the satellites. Now, because the launch price is affordable, it can be marketed at a realistic price.

In other words, lower the price, and you increase the number of customers able to buy your product. I expect the rocket business to boom in the coming years.

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Tucson to be sued over space tourism deal

10:35 am

In the heat of competition: A think-tank has announced that it plans on suing the Tucson city government over its deal with the space tourism balloon company World View.

Jim Manley, Senior Attorney with the conservative think-tank Goldwater Institute in Phoenix, told us he’s filing the suit tomorrow on behalf of three Pima County residents. “We’re asking the court to put a stop to the World View deal and all of the deals that come out of it.”

Manley calls the World View deal “illegal” for, among other things, violating Arizona’s Gift Clause. He says, “What the Gift Clause requires is that money be spent for a public purpose, and that the government receive fair compensation in return.” The lawsuit will also state the deal violates competitive bidding laws, because, Manley says, it was negotiated in secret, with no public bidding.

As much as I think it smart of the city government to try to encourage this business to settle in Tucson, I know, living here in Tucson, that a taint of corruption lingers over the city’s very liberal government. It would not surprise me if this deal includes some of that.

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World View gets incentives to settle in Arizona

9:27 am

The competition heats up: The space tourism balloon company World View has obtained $15 million in subsidies from an Arizona county to base their operation in Tucson.

Today’s go-ahead from the Pima County Board of Supervisors represents an initial step toward setting up the tourist operation. The supervisors voted to invest $15 million, backed by future tax revenue, to build the spaceport. World View would lease the facility from the county over a 20-year term to pay back the investment. The facility would include a launch pad, headquarters building and manufacturing facility, World View said.

Increasingly it looks like Virgin Galactic’s SpaceShipTwo is being left in the dust as other companies move forward with their own plans.

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A new company is now offering balloon flights to the edge of space for one third the price of a suborbital flight.

9:15 am

The competition heats up: A new company is now offering balloon flights to the edge of space for one third the price of a suborbital flight.

World View passengers will soar to an altitude of about 30 kilometers (about 100,000 feet) — far short of SpaceShipTwo’s intended 110-kilometer (68-mile) high peak. Inside the capsule there will be little sensation of microgravity. Rather, the whole point of the ride is the view. “You can be sitting up there having your beverage of choice watching this extraordinary spectacle of the Earth below you and the blackness of space,” project co-founder and Paragon president Jane Poynter told Discovery News. “It really is very gentle. You can be up at altitude for hours, for days for research if you need to be… I think we have the opportunity to give a really, really incredible experience to people — and for a lot less than most of what’s out on the market right now,” she said.

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