Boeing Trades $200M Business for Stake in Archer Aviation
The aerospace giant Boeing has made a surprise move by handing over three of its subsidiaries to Archer Aviation in exchange for a nearly 20% stake in the company. The deal involves Wisk Aero, SkyGrid, and Insitu, with the latter generating over $200 million a year in defense revenue across 35 countries.
The price tag? Zero dollars. Boeing opted for stock instead of cash, keeping a seat at the table while shedding non-core businesses under CEO Kelly Ortberg's leadership.
Industry insiders believe this move is not desperation but a calculated trade. By licensing back Wisk's autonomy tech for its own future aircraft, Boeing maintains upside exposure to the technology without bearing the costs.
The deal has sent shockwaves through the market, with Archer Aviation's stock surging 20% and other players in the drone complex seeing significant gains. The buzz around 'physical AI', a concept that refers to artificial intelligence embedded in machines operating in the real world, is growing louder by the day.
While Archer has yet to execute on its vision, it has gained a valuable endorsement from Boeing and a re-rating of its business model. Wall Street is taking notice, with AeroVironment, Kratos Defense, Red Cat Holdings, and Planet Labs seeing significant gains in sympathy with the deal.