Motley Fool Money A "Shock and Awe" Acquisition
Nov 1, 2022
Bill Mann, a Senior Analyst at Motley Fool, shares his insights on Johnson & Johnson's bold $16.6 billion acquisition of Abiomed. He discusses how this 'shock and awe' move enhances J&J's medical portfolio and the potential it holds. The conversation also touches on Amazon's expansion of ad-free music for Prime members and its strategy to rival major players like Spotify and Disney. Listeners are treated to a blend of market analysis and financial tips that illuminate the ever-evolving landscape of investing and consumer services.
AI Snips
Chapters
Books
Transcript
Episode notes
J&J's Strategic Acquisition
- Johnson & Johnson's acquisition of Abiomed for $16.6 billion, including a 50% premium, strengthens its medical device portfolio.
- This "shock and awe" price is justified by Abiomed's growth, Impella heart pump technology, and potential milestone payments.
Strengthening the Medical Devices Division
- Despite the ongoing split of its consumer drug and medical device divisions, J&J made this acquisition to boost the latter.
- CEO Joaquin Duato has been open about pursuing such acquisitions.
Amazon's Media Play
- Amazon is expanding its ad-free music library and launching 12 hours of daily sports talk programming on Prime.
- This move suggests competition with Spotify, Disney's ESPN, and Paramount.
