RESOLVING THE LEDGER
This is one outlet's own report from CNBC — the article as it was filed. Other outlets are covering the same event; open the full story to compare every source side by side.
See the full story · 4 sourcesIn a move to increase its focus on core operations, Boeing is selling three of its subsidiaries to Archer Aviation in exchange for an undisclosed stake in the startup that focuses on electric vertical take-off and landing aircraft, known as eVTOLs for short.
The subsidiaries include Wisk Aero, which has been developing an autonomous eVTOL, and SkyGrid, which is developing air traffic management systems to be used by air taxis as urban air mobility goes from test flights to commercial operations. The third Boeing subsidiary being sold, Insitu, develops and manufactures high-altitude drones that have been used worldwide, including by the U.S. Navy.
Brian Yutko, Boeing vice president of commercial airplanes product development, said the deal "allows Wisk, SkyGrid and Insitu to accelerate capability development and time to market while ensuring Boeing capitalizes on its investments in these technologies over the past two decades through continued development in our core businesses."
For Archer , the transaction strengthens its position developing eVTOLs and the networks to support them. Insitu also helps Archer extend its military portfolio.
In announcing the acquisitions, Archer CEO Adam Goldstein said, "This is the next big step forward in becoming a diversified platform, rapidly growing our revenue base and bringing scale to our business."
Both companies stand to benefit from the deal. Archer is targeting commercial eVTOL flights by the end of this year or early next year and is eager to establish itself as urban air taxis take off around the U.S.
Boeing also benefits by shedding subsidiaries that are not central to its commercial airplanes, defense and space operations. Since taking over as CEO in August 2024, Kelly Ortberg has repeatedly said Boeing needs to focus on improving its three primary businesses.
Just a few months after becoming CEO, Ortberg made it clear Boeing's path to profitability would mean streamlining the aerospace giant.
"We need to reset priorities and create a leaner, more focused organization," he said in October 2024.
Got a confidential news tip? We want to hear from you.
Get this delivered to your inbox, and more info about our products and services.
Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.
AIPROPX is an independent multi-source news index — we track, compare, and connect coverage from across the web into one place you won't find anywhere else.