Amazon payments for Bezos’ Blue Origin reach $1.8B as shareholders cite conflict of interest – GeekWire
Amazon paid nearly $1.8 billion last year for Blue Origin, the space company run by its founder and chairman Jeff Bezos — nearly three times the amount of the previous year — as the tech giant prepares to consolidate the launch of its low-Earth orbit satellite constellation.
The increase comes as shareholders weigh a proposal to seek a mandatory independent board chairman, citing Bezos’ business interests outside of Amazon as a potential conflict of interest.
Bezos is stepping down as CEO of Amazon in 2021 but remains the executive chairman.
According to the filing, the company paid about $2.2 billion under satellite launch contracts last fiscal year, with about $1.8 billion going to Blue Origin. A proxy for the previous year showed Blue Origin earning about $578 million of its $1.7 billion total.
Amazon is building a constellation of 3,236 Low-Earth orbit satellites under the Amazon Leo program, formerly known as Project Kuiper, to deliver broadband Internet to consumers and businesses. The company has launched 243 satellites so far and has asked the FCC for a two-year extension of the July deadline to launch about half of the fleet.
The company this week also announced a $10.8 billion deal this week to acquire Globalstar, a satellite operator that used SpaceX as its first launch provider.
Blue Origin’s New Glenn rocket is set to fly in January 2025 but has not yet reached the launch level required for launch. In addition to Blue Origin, Amazon has announced agreements in place with United Launch Alliance and Arianespace, and has also tapped SpaceX’s rival SpaceX 9 in other presentations, as Reuters reported this week.
Bezos is also the founder and CEO of AI startup Prometheus, a business that focuses on using AI in manufacturing and engineering in various commercial sectors.
A shareholder proposal calling for a mandatory independent chairman, submitted by the AFL-CIO Reserve Fund, points to Bezos’ growing role outside of Amazon as a cause for concern.
“As a technology company, Project Prometheus could be a competitor or business partner with our Company, raising potential conflicts,” the proposal states, and cites Amazon’s multibillion-dollar launch agreements with Blue Origin as a potential conflict.
It notes that Amazon has also done business with Bezos Washington Post.
Amazon’s board recommends voting against the proposal, saying its independent director structure provides sufficient oversight. The role is currently held by Jamie Gorelick, a former US Deputy Attorney General. The company’s annual meeting is scheduled for May 20.
Blue Origin contracts have come under scrutiny before. A shareholder lawsuit filed in 2023 alleges Amazon’s board spent less than 40 minutes approving launch deals without considering SpaceX as an alternative. The Delaware Court of Chancery dismissed the case, and the state Supreme Court affirmed that decision in November 2025.
