GE is splitting into three companies
Source: CNN
General Electric, the industrial conglomerate founded by Thomas Edison in 1892, is breaking up. GE announced plans Tuesday to split into three separate companies.
GE will become separate, publicly traded companies for its aviation, healthcare and energy businesses. The company said it hopes to spin off the healthcare business to shareholders in early 2023 and that the separation of its renewable energy and power business will occur in early 2024.
Shares of GE (GE) surged as much as 17% in premarket trading on the news before retreating to about a 6% gain in early trading after the open. The stock was already up more than 25% in 2021 before the spin-off announcement.
"By creating three industry-leading, global public companies, each can benefit from greater focus, tailored capital allocation, and strategic flexibility to drive long-term growth and value for customers, investors and employees," said CEO Larry Culp in a press release.
Read more: https://www.cnn.com/2021/11/09/investing/ge-split/index.html
infullview
(982 posts)I thought they were all about becoming a player in the service industry with their entry in to financial services?
bucolic_frolic
(43,425 posts)bucolic_frolic
(43,425 posts)Things like dehumidifiers
Fla Dem
(23,820 posts)On June 6, 2016, Haier and KKR acquired GE Appliances for $5.6 billion. Under the terms of the sale, Haier would have the right to use the GE brand name until 2056.
Haier Group Corporation is a Chinese multinational home appliances and consumer electronics company headquartered in Qingdao, Shandong.
Fla Dem
(23,820 posts)Hard to believe a behemoth like GE could collapse like that. Based on the article it was poorly run in the early 2000's and bad business decisions were made. They have not been able to recover. Reading their historical information in Wikipedia, it was a company whose massive growth, diversification, fraud, poor decisions and leadership certainly lead to their demise. This is what happens when companies get too big to manage and branch out into a myriad of diverse commercial enterprises.
Always remember watching GE Theater.
On March 19, 2013, Comcast bought GE's shares in NBCU (NBC Universal) for $16.7 billion, ending the company's longtime stake in television and film media.
Dawson Leery
(19,348 posts)They maximized profit for stockholders at the expense of everything else.
mahatmakanejeeves
(57,695 posts)This will come as a surprise to GE shareholders, myself included. Check the return on GE for the last twenty years.
Fla Dem
(23,820 posts)In 2018, GE reduced its quarterly dividend from $0.12 to $0.01 per share.[141]
Stock
As a publicly-traded company on the New York Stock Exchange, GE stock was one of the 30 components of the Dow Jones Industrial Average from 1907 to 2018, the longest continuous presence of any company on the index, and during this time the only company which was part of the original Dow Jones Industrial Index created in 1896.[142] In August 2000, the company had a market capitalization of $601 billion, and was the most valuable company in the world.[143] On June 26, 2018, the stock was removed from the index and replaced with Walgreens Boots Alliance.[144] In the years leading to its removal, GE was the worst performing stock in the Dow, falling more than 55 percent year on year and more than 25 percent year to date.[145] The company continued to lose value after being removed from the index.[146]
https://en.wikipedia.org/wiki/General_Electric
SWBTATTReg
(22,191 posts)long long time since I owned some shares...company still flailing about I see, IMHO. Maybe this will finally do the trick in getting them 'turned around' but somehow IMO I don't think so.
brush
(53,949 posts)CEO genius? He was all over the airwaves and newspaper and magazine features. Now it turns out that he was making poor decisions up the yin yang.
I also remember his ass criticizing Pres. Obama quit often, and nastily.
royable
(1,266 posts)Specific Electric.
mahatmakanejeeves
(57,695 posts)lastlib
(23,352 posts)...with loss of pension and benefits......?
Initech
(100,118 posts)BumRushDaShow
(129,805 posts)after getting into the "diversify diversify diversify" craze, creating "GE Capital" (now gone bye bye into spin-off/sell-off land). Same thing happened to Sears and its foray into "financial services".
I always wanted them to go back to their "core business" but those days are long gone with offshoring of manufacturing.
Hortensis
(58,785 posts)trend toward bigger increase in divestitures in too-big businesses, but apparently rates have been going up and down without anything dramatic.
twodogsbarking
(9,863 posts)down 60% over five years.
Locrian
(4,522 posts)read this book - lots of reasons, lots to do with the CEOs, their culture, financial tricks, bad decisions, toxic assets, metrics, ego etc.
https://www.amazon.com/Lights-Out-Delusion-General-Electric/dp/035856705X
Of the three spin offs, Aviation looks the strongest and Culp will ru(i)n it. Power is a joke, they lost billions on Immelts white whale. My guess is book part 2 will be out shortly: how they're going to bungle the new world with lack of resources, brain drain (great resignation, etc, layoffs, early retirement in covid etc) all while trying to turn industrial companies into lean quick profit machines. My money is on a train wreck.