Tuesday, July 24, 2007

Northrop Grumman buys Scaled Composites

The innovative company that built SpaceShipOne has agreed to be taken over by aerospace giant Northrop Grumman Corp. N-G will increase its stake in Burt Rutan's firm Scaled Composites LLC from 40 percent to 100 percent.

Comment: Everyone involved says nothing will change at Scaled Composites, and it will remain under Rutan's leadership and stay a responsive, innovative firm despite being part of a huge conglomerate. The track record of maintaining the small company's unique advantages after changes like this, however, is not good. You could even argue it is nonexistent. Let's hope Scaled beats the odds.

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