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
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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
trend toward bigger increase in divestitures in too-big businesses, but apparently rates have been going up and down without anything dramatic.
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.
