Did Joby Aviation Just Make a Killer Deal, or Is Blade a Lemon?
Joby Aviation (NYSE: JOBY) delighted investors on Monday when it announced the acquisition of Blade Air Mobility's (NASDAQ: BLDE) passenger business. The move gives Joby ownership of what might be the best-known brand in the urban air taxi mobility market.
According to the terms of the deal, Joby will pay Blade in up to $125 million in a combination of cash or stock, according to Joby's choosing. The move will give Joby immediate market access in New York City and Southern Europe, as well as ownership of a business that flew more than 50,000 passengers in 2024, primarily in the New York City area.
Investors loved the agreement, sending Joby stock up 18.8% on Monday, which represented a $2.7 billion gain in market cap. For a price of $125 million, that's an incredible return on investment, at more than 20 times.
Source Fool.com
