Wowza — Joby Buys Defense Company For Half A Billion Dollars

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Electric vertical takeoff and landing (eVTOL) aircraft startup Joby is one of those startups that seems to have been around for ages, but it’s been hard to know if any of these eVTOL aircraft companies are going anywhere. We’re yet to find out if any of these eVTOL companies have a viable future financially. But apparently some of them still have a lot of money….

I was admittedly a bit shocked when I found out that Joby just bought another company for half a billion dollars. In this case, we’re actually talking about a defense technology ​company, Resonant Sciences. (Well, a defense company is one way to make a fortune, presuming it can land a nice big pipeline of contracts.)

“Electric vertical take-off and landing aircraft (eVTOL) companies are focusing more on the military market as commercial development has ​taken longer than expected and defense spending has ramped up, ​driven by wars in Ukraine and the Middle East,” Reuters notes.

“Here ⁠are some more details:

• Joby said it will continue developing its air ​taxi eVTOL and will move its defense programs, including hybrid and ​autonomous VTOL projects, under Resonant Sciences.
• Dayton, Ohio-based Resonant designs, manufactures and delivers advanced radio-frequency and mission systems for U.S. national security customers.
• Its systems ‘help aircraft see, communicate, ​and operate in complex environments,’ Joby CEO JoeBen Bevirt told ​Reuters.
• ‘So, this allows our commercial team to be laser focused on delivering on ‌the ⁠air taxi mission,’ while potentially opening new markets for Joby by pairing its products with Resonant’s technologies, Bevirt said.
• Shares of Santa Cruz, California-based Joby fell 6.5% in premarket trading.
• Joby expects to fund the ​deal with about $450 million ​in cash ⁠and $50 million in its common stock.
• The deal, expected to close in the first half of 2027, will ​give the combined company about 1 million square ​feet of ⁠manufacturing, integration and testing space across the Dayton region.
• Upon closing, Resonant will become Joby’s dedicated defense business and include its hybrid aircraft ⁠and autonomy ​technologies, while Joby’s commercial aircraft business ​will remain focused on its electric air taxi initiatives.”

If that’s where the money is, that’s where the money is. It’s more exciting and cooler talking about an eVTOL aircraft company that is used for air taxi service or personal mobility, but this is certainly an application where you could imagine Joby earning back its investment and more.