| Transcript |
| 0:00 | · | only days ago a lengthy public suit |
| 0:02 | · | against Amazon regarding its project |
| 0:03 | · | kyber decision was filed project Kuiper |
| 0:06 | · | similar to starlink is trying to |
| 0:07 | · | increase Global Broadband access through |
| 0:09 | · | a constellation of over 3000 satellites |
| 0:11 | · | in low earth orbit back in early 2022 |
| 0:14 | · | Amazon signed and announced significant |
| 0:15 | · | launch contracts with blue origin's new |
| 0:17 | · | Glen ulys Vulcan and Aryan spaces Aryan |
| 0:20 | · | 6. in the suit however shareholders |
| 0:22 | · | claim that Amazon acted in bad faith and |
| 0:24 | · | made no effort to properly discharge |
| 0:26 | · | their fiduciary duties when picking the |
| 0:27 | · | launch providers they primarily claim |
| 0:29 | · | that SpaceX the leader within the |
| 0:31 | · | industry was glossed over and not even |
| 0:33 | · | considered when making the decision if |
| 0:35 | · | that were the case they would have a |
| 0:36 | · | valid point considering the cost per |
| 0:37 | · | launch and timeline that these |
| 0:38 | · | satellites are meant to launch by suit |
| 0:41 | · | puts a lot of focus on Blue origin and |
| 0:42 | · | the relationship between musk and Bezos |
| 0:44 | · | they strongly suggest that SpaceX was |
| 0:46 | · | excluded from consideration from the |
| 0:48 | · | project hyper competition because of the |
| 0:50 | · | Rivalry between the two hero go more in |
| 0:52 | · | depth into this new lawsuit what it |
| 0:53 | · | means for the future launches its |
| 0:55 | · | significance and more |
| 0:57 | · | [Music] |
| · | New Lawsuit |
| 1:04 | · | with Amazon not having a rocket of its |
| 1:06 | · | own in order to launch its 3000 plus Leo |
| 1:08 | · | satellites they needed to find multiple |
| 1:09 | · | companies that could in April 2022 |
| 1:12 | · | Amazon announced agreements with Aryan |
| 1:13 | · | space blue origin and United launch |
| 1:15 | · | Alliance |
| 1:16 | · | this contract was a very big deal and |
| 1:18 | · | offered a significant amount of money to |
| 1:19 | · | the three companies the main reason |
| 1:21 | · | being you need a lot of launches to put |
| 1:23 | · | over 3 000 satellites into orbit |
| 1:25 | · | specifically the contracts total up to |
| 1:27 | · | 83 launches over a five-year period |
| 1:29 | · | providing capacity for Amazon to deploy |
| 1:31 | · | the majority of its 3236 satellite |
| 1:33 | · | constellation |
| 1:34 | · | Amazon signed an agreement with blue |
| 1:36 | · | origin to secure 12 launches using new |
| 1:38 | · | Glen with options for up to 15 |
| 1:39 | · | additional launches the company then |
| 1:41 | · | secured 38 launches with Ula and the |
| 1:43 | · | final 18 with Aryan space this leads us |
| 1:46 | · | to today with a new suit arguing these |
| 1:48 | · | decisions weren't in the best interest |
| 1:49 | · | of the company |
| 1:50 | · | based on information in the lawsuit |
| 1:52 | · | Amazon management and form the board's |
| 1:54 | · | audit Committee in July 2020 it was |
| 1:55 | · | considering Aryan space blue origin Ula |
| 1:58 | · | and a fourth company for launch |
| 1:59 | · | contracts the committee the suit stated |
| 2:01 | · | did not take any steps to oversee the |
| 2:03 | · | negotiation process or to insulate the |
| 2:05 | · | process from conflicts of interest the |
| 2:07 | · | suit goes on to argue that the committee |
| 2:09 | · | spent no more than a few minutes |
| 2:10 | · | discussing the contracts based on the |
| 2:12 | · | length of the meeting and number of |
| 2:13 | · | items on the agenda before approving |
| 2:14 | · | them and forwarding them to the full |
| 2:15 | · | board of directors despite being the |
| 2:18 | · | launch provider with the most proven |
| 2:19 | · | track record and the lowest prices in |
| 2:20 | · | the industry SpaceX was seemingly not |
| 2:22 | · | considered by Amazon the complaint |
| 2:24 | · | states by excluding SpaceX Bezos and his |
| 2:27 | · | management team minimize bid competition |
| 2:28 | · | for the launch agreements and likely |
| 2:30 | · | committed Amazon to spending hundreds of |
| 2:31 | · | millions of dollars more than it would |
| 2:33 | · | have otherwise had to they said in |
| 2:35 | · | another quote they point out |
| 2:36 | · | inexplicably the most famous reliable |
| 2:38 | · | and obvious launch provider in the world |
| 2:40 | · | SpaceX was not among the four companies |
| 2:42 | · | presented to the audit committee SpaceX |
| 2:44 | · | founded owned and managed by bezos's |
| 2:46 | · | longtime rival Elon Musk has by far the |
| 2:48 | · | most proven rocket launch track record |
| 2:50 | · | in history having now completed some 235 |
| 2:52 | · | successful launches of its Falcon 9 |
| 2:54 | · | rocket SpaceX is also known to be one of |
| 2:56 | · | the most cost effective launch providers |
| 2:58 | · | due to its ability to reuse rocket |
| 2:59 | · | boosters and carry large payloads on |
| 3:01 | · | each launch they said it even goes on to |
| 3:03 | · | State Bezos was intimately familiar with |
| 3:05 | · | SpaceX and musk success his blue origin |
| 3:07 | · | has repeatedly lost out to SpaceX and |
| 3:09 | · | competing for lucrative government |
| 3:10 | · | launch contracts each time musk is |
| 3:12 | · | publicly taunted bezos's loss on Twitter |
| 3:14 | · | and each time Bezos has filed legal |
| 3:16 | · | protests and challenges seeking to |
| 3:18 | · | overturn the government's decisions to |
| 3:19 | · | choose SpaceX over blue origin they said |
| 3:21 | · | based on some of these quotes it's clear |
| 3:23 | · | the picture the complaint is trying to |
| 3:25 | · | pay |
| 3:25 | · | all this being said the case does have |
| 3:27 | · | some substantial claims that need to be |
| 3:29 | · | explained on Amazon's side if they can |
| 3:31 | · | prove that the decisions made regarding |
| 3:32 | · | who launches the satellites was |
| 3:34 | · | influenced by a rivalry and didn't act |
| 3:35 | · | in the best financial interest of the |
| 3:36 | · | company Amazon could be in a bit of |
| 3:38 | · | trouble this lawsuit has some value and |
| 3:40 | · | claims that are fair when looking at the |
| 3:41 | · | options in different providers at the |
| 3:43 | · | same time an Amazon spokesperson said |
| 3:45 | · | the claims in this lawsuit are |
| 3:47 | · | completely without Merit and we look |
| 3:48 | · | forward to showing that through the |
| 3:49 | · | legal process |
| · | 2026 Deadline |
| 3:55 | · | there are a lot of important factors |
| 3:57 | · | regarding this lawsuit in addition to |
| 3:58 | · | the cost Amazon is facing somewhat of a |
| 4:01 | · | time crunch to launch its Kuiper |
| 4:02 | · | satellites its Federal Communications |
| 4:04 | · | Commission license requires the company |
| 4:06 | · | to have half the constellation or more |
| 4:07 | · | than 1600 satellites in orbit by July |
| 4:09 | · | 2026 and the full constellation in orbit |
| 4:12 | · | by July 2029 |
| 4:13 | · | three different Rockets picked all of |
| 4:15 | · | yet to launch and in some cases are |
| 4:16 | · | facing delays the first launch of ula's |
| 4:19 | · | Vulcan Centaur is slipped to no earlier |
| 4:21 | · | than the fourth quarter of this year |
| 4:22 | · | while the first flights of Aryan spaces |
| 4:24 | · | Aryan 6 and bludgeon snooklin have been |
| 4:26 | · | delayed to 2024. currently none of the |
| 4:28 | · | three companies have said when those |
| 4:30 | · | Vehicles would start launching kyber |
| 4:31 | · | satellites when it comes to Next |
| 4:33 | · | Generation launch Vehicles oftentimes |
| 4:34 | · | Maiden flights get pushed back into |
| 4:36 | · | lights continue this is somewhat of a |
| 4:38 | · | common theme across the entirety of the |
| 4:39 | · | space industry this being said it's fair |
| 4:42 | · | to point out that having more than 1600 |
| 4:43 | · | satellites in orbit by 2026 is a bit |
| 4:45 | · | ambitious the lawsuit takes aim at Blue |
| 4:48 | · | origin in particular and claims that |
| 4:49 | · | they are not the best option it's quoted |
| 4:51 | · | saying beyond the conflicted nature of |
| 4:53 | · | these contracts there was another |
| 4:54 | · | glaring problem blorgan's lack of |
| 4:56 | · | reliability since its founding |
| 4:58 | · | georgian's rocket development track |
| 4:59 | · | record has featured more blemishes and |
| 5:01 | · | setbacks and successes blue origin |
| 5:03 | · | needed well over a decade to develop a |
| 5:05 | · | small rocket meant to take humans into |
| 5:06 | · | space for only a few minutes at a time |
| 5:08 | · | they said they continue to comment on |
| 5:10 | · | the company's lack of progress the |
| 5:12 | · | lawsuit also highlights the be4 engine |
| 5:13 | · | and how it impacts two of the launch |
| 5:15 | · | providers that were picked |
| 5:16 | · | specifically in another quote they say |
| 5:18 | · | the effect of the delays in new Glen's |
| 5:20 | · | development was not limited only to Blue |
| 5:22 | · | origin but was also felt by other rocket |
| 5:23 | · | companies that were depending on Blu |
| 5:25 | · | origin's engines for the use in their |
| 5:26 | · | own Rockets most notably you will lay |
| 5:28 | · | which one part of the nssl contract that |
| 5:30 | · | blurred and lost out on planned to use |
| 5:32 | · | blue origin's be4 engines in its next |
| 5:34 | · | Generation Vulcan rock that remained |
| 5:35 | · | under development at this time because |
| 5:37 | · | ulys Vulcan Centaur depended on |
| 5:39 | · | receiving fully developed be4 engines |
| 5:41 | · | from Blue origin blurgen's development |
| 5:43 | · | delays directly impacted the development |
| 5:44 | · | and testing of the Vulcan Centaur in |
| 5:46 | · | February 2021 when bluurgen was forced |
| 5:49 | · | to delay the projected launch at the new |
| 5:50 | · | Glen to late 2021 Eula was forced to |
| 5:52 | · | similarly announce that the Vulcan |
| 5:54 | · | Centaur would also not launch until the |
| 5:55 | · | fourth quarter of 2021 they said the |
| 5:58 | · | public version of the complaint redacts |
| 6:00 | · | many details about the launch contracts |
| 6:01 | · | including specific dollar values it does |
| 6:04 | · | however state that the combined |
| 6:05 | · | contracts were the second largest |
| 6:06 | · | capital expenditure in Amazon's 25 plus |
| 6:08 | · | year history after its 13.7 billion |
| 6:11 | · | dollar acquisition of Whole Foods |
| 6:12 | · | Amazon's second largest acquisition of |
| 6:14 | · | Studio MGM in 2021 was valued at 8.5 |
| 6:17 | · | billion while the super Dax the contract |
| 6:20 | · | values it does state that nearly 45 |
| 6:21 | · | percent of their overall value goes to |
| 6:23 | · | Blue origin either through the direct |
| 6:24 | · | contract between Amazon and blue origin |
| 6:26 | · | or you Willis purchase a be4 engines |
| 6:28 | · | from Blue origin |
| 6:29 | · | in this case it's partially mentioned |
| 6:31 | · | prior Ula secured 38 launches with |
| 6:33 | · | Vulcan this vehicle uses two be4 engines |
| 6:35 | · | and is not reusable meaning this |
| 6:37 | · | contract alone requires 76 be4s be |
| 6:39 | · | bought from Blue origin to be used on |
| 6:41 | · | Vulcan rockets by now Amazon has spent |
| 6:43 | · | about 1.7 billion on those three launch |
| 6:45 | · | contracts to date including 585 million |
| 6:47 | · | directly to Blue origin besides that the |
| 6:50 | · | suit continues to put a blame on the |
| 6:51 | · | relationship between Bezos and musk and |
| 6:53 | · | suggests that SpaceX was excluded from |
| 6:55 | · | consideration from the project Kuiper |
| 6:56 | · | competition because of the Rivalry |
| 6:58 | · | between them a good portion of the |
| 7:00 | · | 77-page complaint is devoted to |
| 7:02 | · | outlining the history and the |
| 7:03 | · | competition between the two billionaires |
| 7:04 | · | and between SpaceX and blue origin which |
| 7:06 | · | included blue origin's protest of a NASA |
| 7:08 | · | lunar lander contract won by SpaceX in |
| 7:10 | · | 2021 that section even features |
| 7:12 | · | screenshots of tweets from musk |
| 7:14 | · | appearing to taunt Bezos and blue origin |
| 7:15 | · | given their bitter track record Bezos |
| 7:18 | · | has every reason to exclude SpaceX from |
| 7:19 | · | the process entirely the suit States in |
| 7:22 | · | Bezos it must be assumed could not |
| 7:23 | · | swallow his pride to seek his bitter |
| 7:25 | · | Rivals help to launch Amazon satellites |
| 7:27 | · | they set |
| 7:29 | · | a new suit was just filed against Amazon |
| 7:31 | · | trying to make the point that they |
| 7:32 | · | didn't act in the company's best |
| 7:33 | · | interest by not picking SpaceX it goes |
| 7:36 | · | on to cite rivalry delays cost and more |
| 7:38 | · | is reasons why the decision was |
| 7:39 | · | incorrect |
| 7:40 | · | we will have to wait and see how it |
| 7:42 | · | progresses and the impact it has on the |
| 7:43 | · | space industry thank you very much for |
| 7:45 | · | watching |
| 8:05 | · | thank you |
