Space X should buy Boeing and then break it up, claims leading investor Duncan Davidson, a partner at Bullpen Capital.
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While Boeing is working to rebuild its business after massive losses caused by COVID, two fatal 737 MAX crashes and significant challenges getting aircraft certified, Mr Davidson said Boeing’s investors would be best rewarded if SpaceX, the spacecraft maker founded by Elon Musk, bought Boeing and broke it up.
According to Seeking Alpha, Mr Davidson made the claim in an interview Thursday on business news channel CNBC.
“Elon likes to fix things. Boeing needs to be fixed,” Davidson said. “It may be the space segment of Boeing, which is what Elon would want, would be relatively cheap. Because I think Boeing is selling at a huge discount to a breakup value.”
In such a scenario, Seeking Alpha said SpaceX would acquire Boeing and spin off its defence business and commercial airplanes unit. The moves would position SpaceX to win more longer-term contracts from the U.S. government, such as for spacecraft that ferry astronauts to and from the International Space Station.
“The reason why Elon is the right guy, by the way, is that Boeing has to get back to an engineering culture,” Davidson said, pointing to the 797 as a plane that never got off the drawing board. “The engineering culture would have launched it. The finance culture doesn’t launch anything.”
Musk, who also founded electric car pioneer Tesla, last month completed a $44 billion deal to take the social-media platform Twitter private.
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