There is a lot of cross-ownership. LOR is a rather incestuous company in that respect. Forty-Nine percent of SS/L is currently owned by foreign interests. This was actually a brilliant move on the part of Bernard Schwartz because it enabled the old Loral to get SS/L for pretty close to nothing. The Europeans financed the purchase, and Loral got to keep a majority interest. This was also a big experiment in the defense industry because it was the first time that the state department allowed a domestic defense contractor to be owned to this extent by foreigners. So far the national interest part of it has worked smoothly, to my knowlege.|
The original reason for getting the 49ers (as we at SS/L call them) in on the purchase, besides financing, was to create synergies. I will refrain from expressing an opinion as to whether this goal has been met effectively. In the first couple of years there was not a great deal of business between SS/L and the 49ers, then came Globalstar. And things got really messy. I'm not as involved today as I was when Globalstar was in its infancy, but back then both Loral corporate and SS/L owned stakes in Globalstar, LP. The 49ers had individual stakes in G*, and at the same time retained their stakes in SS/L. In order to get the synergy thing rolling, GLP ordered 56 satellites from SS/L which then subbed out to the 49ers. Thus SS/L's owners were its customers, and SS/L was a customer of GLP, of which it was an owner.
Lockheed Martin does hold 20% of LOR, but so far I haven't heard of any new ventures springing from this. LOR's assets are pretty simple, right now. Interests in GLP, SS/L, and the brake company, a big chunk of cash (supplied Lockheed Martin), and a plan to purchase ATT Skynet(?). Somebody recently posted that Lockheed Martin couldn't afford SS/L. That's probably part of it. But there may have also been antitrust concerns. And don't forget that Mr. Schwartz needed a foundation from which to build his next empire.