Boeing Sells Three Businesses to Archer Aviation in Strategic Move
On August 10, Boeing announced a deal to sell three of its businesses—Wisk (eVTOL), Insitu (drones), and SkyGrid (air traffic software)—to eVTOL company Archer Aviation. In exchange for these assets plus a $55 million equity investment in Archer, Boeing will receive nearly 20% ownership through newly issued shares and warrants. The deal is expected to close later this year after regulatory approval. This transaction allows Boeing to streamline its operations by offloading non-core businesses while retaining the right to use Wisk’s autonomous flight technology for future aircraft development. While the financial impact may be relatively small compared to Boeing's $166 billion market cap, it removes potential distractions and supports management focus on commercial aviation recovery and defense growth. Boeing recently received FAA approval for its 737 MAX 7 model, a key step in regaining production momentum after years of setbacks. However, the stock currently trades at around 77 times earnings—well above industry peers—and analysts suggest it may need further profitability clarity or price correction before becoming an attractive long-term investment.
Topics: Archer Aviation Boeing divestitures eVTOL strategic partnership