Blade Air Mobility (BLDE) stock rose as much as 30% early Monday after the company struck a deal with Joby Aviation (JOBY) to sell its helicopter passenger rideshare business for $125 million.
Joby, which is developing electric air taxi technology, will not take on Blade’s medical transport business, which will be spun out into a new public company called Strata Critical Medical.
Joby stock rose more than 5% following the news.
Blade offers its helicopter rideshare service on a per-seat basis from several different landing spots around New York City. It takes passengers to nearby towns such as the Hamptons or local airports like New Jersey’s Newark Liberty International Airport. Blade flew more than 50,000 passengers in 2024 from 12 different terminals, according to Joby’s press release.
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The company, which had a market cap of just over $300 million before the deal was announced Monday morning, went public through a SPAC transaction in 2021 and has not reported an annual profit since. Blade shares are down 11% on the year and down roughly 60% since the company’s public market debut.
The acquisition will see Blade founder and CEO Rob Wiesenthal stay in charge of Blade’s passenger operations as the company becomes a wholly owned subsidiary of Joby, according to Joby’s press release.
The acquisition comes as $14.4 billion Joby, backed by Toyota (TM), is working toward certification from the Federal Aviation Authority (FAA) for its battery-powered electric vertical takeoff and landing aircraft, or eVTOLs.
Joby is planning to have five aircraft in final phases of certification by 2026 as it looks to begin commercial flights early next year, according to Bloomberg, which reported the two sides were exploring a deal over the weekend.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.
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