If BAE signs this contract, BAE will receive .001% of Lockheed Martin’s yearly budget, which totals to around $600,000. BAE will pay back LM in a 2 year period following a 4 month grace period on either a  quarterly or monthly basis.

 The CEO of BAE, Lisa Carr, released a tweet stating that she is looking forward to signing with LM. The Senior Vice President of Communications in LM, Dean Acosat, released a statement to the press replying to the CEO of BAE’s tweet

“ Lockheed Martin is deeply concerned about the jobs in the United Kingdom that could be lost if BAE went to bankruptcy, as well as for the implications this would have in Europe’s security. That is why we made an agreement in which Lockheed Martin will prevent BAE from bankruptcy in exchange of a fair amount of technology. This created an open door for new collaborations.”

So what does LM get out of this? The plan is to pool resources with BAE to help them in the following areas

• Rotorcraft developments on the Defiant X program, and any future rotorcraft study will be done in a joint fashion, taking into account the past success of both corporations in this field 
• Lockheed Martin will become a full collaborator within the Tempest innovation and it will be fully implemented into the F-35 program in Britain and Australia.
• Lockheed Martin will gain full advertising rights of collaborative innovation including Tempest and other EW programs implemented into the F-35 program.
• Countries currently using BAE fighter jets will be offered an option to switch to our collaborative F-35 program.
• The Missions Systems radars programs of BAE and LM should work together to enhance and improve upon both companies systems,
• The Sentinel A4 radar system will stay under the development of the LMC
• New radar systems will begin to be developed jointly in both the UK sectors and US sectors of both companies 

Boeing, Lockheed Martin’s competitors, will be affected by this greatly. Since the 2019 plane crashes with the 737 Max, Boeing has been struggling financially. Boeing’s two biggest competitors are BAE and Lockheed Martin, so the companies combining forces will leave them even farther behind financially and technologically. 

This is just another instance of the media black out that is occuring. Defense companies around the world are holding closed meetings – turning away reporters and press. BAE systems faced internal scandal with one of their executives and Lockheed Martin has refused any statement. Bluebird Aero systems has turned down most press interference, until their recent press statement, denying any legitimate part in the misuse of their equipment in Belarus. 

The CIA and DOD have also refused any meetings with the press.

While Many companies remain cryptic, Northrop G Harris III has remained fairly forthcoming with information. But only time will tell if they follow suit with the other defense companies.

The statement was given in response to earlier disruption in which an article was published regarding rumors of a BAE Systems deal with the CIA, which was denied by the board in communication with British Prime Minister Boris Johnson almost immediately after its release. 
Neither side of the issue relating to the earlier publication has been independently verified by the Jerusalem Post.

BAE Systems has faced turmoil, both internal and external, in recent months. Conflict within company leadership has also presented issues, as strong disagreement between BAE’s CEO and members of the board of directors has hampered progress on a deal and has already resulted in changes in position within the company. The corporation is bankrupt, and the implementation of a new CEO presents the opportunity for radical change in the company.

BAE Systems’ newly appointed CEO, Ms. Lisa Carr, has stated that the company’s current financial difficulties are entirely the responsibility of the previous CEO, Charles Woodburn, and has promised significant changes in the company’s strategy moving into 2021. It’s unclear exactly what these changes may include, but increased foreign partnership appears to be a very viable option, with potential markets including Europe, Asia, and the US. Division is present over the possibility of a Belarusian deal, with major decisions being revisited due to Belarus’s rapidly deteriorating situation.