Altria/NJOY Deal Rationale
Altria recently agreed to acquire NJOY for up to $3.25B, withdoing the heavy lifting on advising Altria and NJOY, respectively. It seems like a way overpriced move for Altria to be paying such an amount for a company with only 3% of the US vape , even if NJOY's trump card is that they have FDA approval for their products which the No. 1 and 2 market leaders in the US are struggling with. Considering that Altria has an IP-sharing agreement with Juul, why don't they just develop an in-house product rather than spend such a premium acquiring NJOY, especially after the whole Juul fiasco? Would love to hear some more discussion about this.