Raytheon to Purchase Socialbomb for Undisclosed Amount
Defense contractor Raytheon has acquired Socialbomb, a social technology firm. In a unanimous decision this morning, Raytheon Corporation’s board voted to approve the acquisition of the New York-based technology firm that develops social web and mobile applications. Terms of the deal were not disclosed, but the merger would value the software company at $500 million, say sources close to the board. While analysts question the deal on strategic grounds, there is industry speculation about the company’s plans to weaponize social media.
“We’ve all heard of the atomic bomb, the hydrogen bomb, and the neutron bomb, but we believe the future lies in newly developed ‘social bomb’ technology,” said senior executive who requested anonymity since he was not authorized to speak on the matter. Frank Newcastle, an analyst at AFD Research, notes that while the technology was unproven in defense applications, early tests show promising results.
It’s too early to tell how Raytheon plans to develop Socialbomb’s technology into a weapons-grade defense product, but contacts at the Pentagon have expressed interest in the technology. Representatives of both Raytheon and Socialbomb could not be reached for comment.
