Boeing Trades Wisk Aero Stake for Archer Aviation Holding
Boeing has made a significant move in its investment strategy by selling off three of its subsidiaries, including Wisk Aero and Insitu, in exchange for a nearly 20% stake in Archer Aviation. The deal is worth over $1 billion, based on Archer's share price at the time of the announcement.
According to sources, Boeing has been trimming non-core businesses as part of its effort to steady its finances and focus on making and delivering planes. This move follows a recent sale of its Jeppesen navigation-data unit for $10.6 billion in cash.
The swap with Archer Aviation is seen as a strategic move by Boeing to reduce day-to-day funding needs and management distraction while still keeping some upside if Archer succeeds. The two companies have also announced a collaboration and technology-sharing agreement, giving Boeing access to Wisk's autonomous-flight software for current and future commercial and defense programs.
The deal changes the story from liquidity to focus, with Boeing now holding a significant stake in Archer Aviation. This move can be seen as strategic validation for Archer, but it also creates an 'overhang' risk if Boeing later sells its shares and adds supply to the market.