Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Boeing Considers Selling Military Assets Amid Corporate Crisis

Wed 20 Mar 2024 | 04:27 PM
By Ahmad El-Assasy

Sources familiar with the matter revealed that American aerospace and defense giant Boeing is contemplating the sale of at least two of its military business units, facing its most significant crisis in years. 

According to Bloomberg News, Boeing’s financial advisors have been engaging with potential buyers to gauge their interest in some of Boeing’s smaller divisions. 

These efforts have been ongoing for about a year, predating an incident on January 5, where an emergency door seal detached from a Boeing aircraft, leading to increased scrutiny of the company.

The assets anticipated for sale include Digital Receiver Technology, which manufactures products for government intelligence and defense departments. 

Potential buyers have also been surveyed regarding some military programs within Boeing’s Global Services division.

Earlier, Boeing explored selling Argon ST, a provider of command, control, surveillance, and reconnaissance systems, which Boeing acquired for $775 million in 2010. This initiative has been paused, according to one source.

Following the news, Boeing's stock price rose by 1.1%. The company continues to evaluate its options concerning its stake in United Launch Alliance, a rocket launch venture jointly owned with Lockheed Martin Corp.

In January, Bloomberg reported that Blue Origin, owned by American billionaire Jeff Bezos, expressed interest in purchasing United Launch Alliance, highlighting the ongoing strategic shifts within the aerospace and defense sectors.