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Founded by Thomas Edison and once the world's most valuable company, General Electric (GE), is splitting into three.
Care To Elaborate?
Sure. GE will break into three smaller, sector focused public companies, each with their own team and board of directors.
- The health care business will separate in early 2023.
- The renewable energy, fossil fuel power, and digital divisions will merge and break off in 2024.
- The last to take off will be GE Aviation—a major supplier for the military.
Looking Back In Time
Founded in 1892, GE was an original member of the Dow Jones Industrial Average. Being a conglomerate and all, GE was into everything, from petroleum to aircraft engines to Telemundo.
However, the company was booted from the Dow in 2018. 😳
Clearly, making soap, soap dispensers, and soap operas all at the same time has never worked for anyone in the history of business.
GE has been slowly imploding since the financial crisis of 2008, and lost 74% of its value from 2016–2018.
Zooming Out
Analysts following the matter feel that GE’s breakup is as much an indictment of the outdated conglomerate model as it is of the company itself.
As for the microwave division? It’s been gone for a while, having been sold off with the rest of GE Appliances in 2016.