Blue Origin, Jeff Bezos’s rocket company that fiercely competes with SpaceX over NASA contracts, is now seeking money outside of the Amazon billionaire’s pocketbook for the first time—$10 billion at a $130 billion valuation, according to DealBook.
DealBook reports that Bezos himself will contribute $2 billion and global asset manager Coatue Management will contribute $4 billion, with the remainder expected from institutional investors. Historically, Bezos had funded the company by selling his personal Amazon stock.
“Another way to think about it is Jeff Bezos doesn’t want to put any more of his own money into the business,” Nicolas Owens, an equity analyst who covers SpaceX for Morningstar, told Fortune. “He has observed that institutional investors were interested in investing in SpaceX, and so maybe he should ask them if they also want to invest in him.”
The move marks a turning point for Bezos’ space company. After decades as a privately bankrolled moonshot, it’s now seeking institutional firepower just as Musk’s SpaceX is being tested by public markets. Shares in SpaceX have surrendered nearly all of the gains from their blockbuster stock market debut, cratering 16% in a single day on June 22 and closing at $149.47 on July 7—a 29% retreat from its $211.39 closing peak on June 16 and roughly back to where it opened.
