Story
Johnson & Johnson Shares Rise on Report of $20 Billion Orthopedics Unit Sale to Apollo
Shares of Johnson & Johnson (NYSE:JNJ) rose in premarket trading Monday following reports that private equity firm Apollo Global Management (NYSE:APO) is in discussions to acquire the company's orthopedics business.
The Potential Deal
According to a Bloomberg News report published Friday, which cited people familiar with the matter, the talks could value the orthopedics division at nearly $20 billion. The sources indicated that an agreement could potentially be finalized within the next several weeks.
This move would represent a significant divestment for Johnson & Johnson, allowing the healthcare conglomerate to streamline its operations. The orthopedics unit, which generated $9.3 billion in revenue in 2025, has been a major contributor to the company's top line but has also faced significant legal challenges.
Strategic Context
AdThe division has been the subject of thousands of lawsuits related to its hip replacement devices, creating a long-standing legal overhang for Johnson & Johnson. A sale to a private equity firm like Apollo would allow J&J to offload these liabilities and focus on its pharmaceutical and other medical device segments.
For investors, such a sale could be viewed as a positive step to unlock value by removing a source of legal and financial uncertainty. The reported valuation suggests strong interest in the underlying assets despite the associated risks.
Market Reaction
Following the news, Johnson & Johnson shares climbed 1.3% to $268.96 in premarket trading on Monday. The positive market reaction signals investor approval of the potential transaction and its strategic implications for the company's future focus and financial health.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.