Boeing Sells Subsidiaries to Archer Aviation for Stake

Boeing has sold three of its subsidiaries to Archer Aviation in exchange for a stake in the startup. The deal gives Boeing a 19.75% stake in Archer's Class A shares, with options to purchase more over four years.

The subsidiaries being sold include Wisk Aero, which has been developing an autonomous eVTOL, and SkyGrid, which is working on air traffic management systems for urban air taxis. Insitu, a drone manufacturer, will also be transferred to Archer.

Boeing's CEO Kelly Ortberg has said the company needs to focus on its core operations, and selling these subsidiaries allows Boeing to do so. The deal benefits both companies, with Archer solidifying its portfolio and Boeing streamlining its organization.