News

Space Systems/Loral to be sold for $1 billion

Palo Alto-based subsidiary of Loral Space & Communications Inc. to be sold to MacDonald, Dettwiler and Associates Ltd.

Loral Space & Communications Inc. announced Tuesday, June 26, that it will sell its Palo Alto-based subsidiary Space Systems/Loral in a deal that could top $1 billion.

The sale will be made to Canada-based MacDonald, Dettwiler and Associates Ltd.

"Both Space Systems/Loral and MacDonald, Dettwiler and Associates are already important suppliers to the worldwide satellite industry," John Celli, President of Space Systems/Loral, stated in a press release. "The combination is a very good strategic fit for both companies. Together, we will be in an even stronger position to support the growth requirements of both new and existing customers."

The Boards of Directors of Loral and MacDonald, Dettwiler and Associates have each approved the agreement and the sale is expected to close later this year after certain regulatory approvals and customary closing conditions are completed.

Loral Space & Communications is a satellite communications company that designs and manufactures satellites and satellite systems for commercial and government applications. Services include fixed satellite services, direct-to-home television, broadband communications, wireless telephony, weather monitoring and air-traffic management.

Comments

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Posted by cheap?
a resident of Downtown North
on Jun 27, 2012 at 12:10 pm

Facebook paid $1 billion for Instagram. Instagram has 13 employees and zero profits. Now Loral goes for the same price. Presumably, Loral has numerous factories and thousands of employees. Is Loral massively under-priced or is their business model obsolete?


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Posted by Hulkamania
a resident of Duveneck/St. Francis
on Jun 27, 2012 at 12:36 pm

A better question might be, who was the bigger sucker in their purchases?


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Posted by Karen
a resident of Midtown
on Jun 27, 2012 at 12:46 pm

Loral will be turfed out, then obliterated, similar to Syntex/Roche. There goes the tax base. The upside is that low cost housing can replace those buildings once they are torn down. That should make all the local do-gooders feel good.


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Posted by Buy-The-Numbers
a resident of Another Palo Alto neighborhood
on Jun 27, 2012 at 12:51 pm

Here's some financials for Loral ..

LORAL REPORTS FOURTH QUARTER AND YEAR END 2011 FINANCIAL RESULTS:
Web Link


 +   Like this comment
Posted by lazlo
a resident of Old Palo Alto
on Jun 27, 2012 at 6:26 pm

...another superfund site goes on the market for housing. Always funny how city council likes to put low income housing on superfund sites, but can't figure out why JCC built their campus on a superfund site? To the poster who brags that Facebook was smart enough to spend $1,000,000,000 on a company with no product, well, still lots of $38 shares on the market [Portion removed by Palo Alto Online staff].


 +   Like this comment
Posted by VoxPop
a resident of Old Palo Alto
on Jun 27, 2012 at 8:18 pm

Actually, this looks like a pretty good fit for MDA. [Portion removed by Palo Alto Online staff]. SS/L is a significant player in the global satellite market and MDA seems to concentrate on the entire data stream, from acquisition through analysis and application. Satellites gather information and send it back to earth.


 +   Like this comment
Posted by Hal
a resident of Charleston Gardens
on Jun 28, 2012 at 11:40 am

Man, I remember when it was Philco Ford.


 +   Like this comment
Posted by Carlito waysman
a resident of Old Palo Alto
on Jun 28, 2012 at 1:02 pm

[Post removed by Palo Alto Online staff.]


 +   Like this comment
Posted by David
a resident of Another Palo Alto neighborhood
on Jun 28, 2012 at 2:48 pm

One building at the old Phillco, Ford Aerospace, Loral site in Palo Alto was too expensive to move (space simulator). If they're still using it, the new company may keep the site just for that facility.


 +   Like this comment
Posted by resident
a resident of Another Palo Alto neighborhood
on Jun 28, 2012 at 3:52 pm

As far as I know, Loral is expanding. They just got approval for a satellite testing facility on their Fabian campus.


 +   Like this comment
Posted by Save our businesses
a resident of Old Palo Alto
on Jun 29, 2012 at 9:10 am

I'm worried they'll shut down their Palo Alto operations. More condos and overcrowded schools will follow suit.


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