Once the world’s most valuable company, the American giant General Electric is now planning to split into 3 parts.
GE is so famous! But why?
It has a loooong history: GE was founded by Thomas Edison (the lightbulb 💡 inventor) in 1892. It has operations in healthcare, energy, aviation, investments and… nearly everything.
- GE was once the most valuable company globally, but it got kicked out of the Dow Jones Index in 2018.
Why split? In simple words: to stay focused. GE believes this could make its business simpler and better utilize the industry-specific expertise of each team… and ultimately make more money.
I see… So how?
Here’s its plan: GE will split into three public companies by 2024… though it has yet decided on the new names.
- Healthcare 💉 splitting off in 2023. This company will focus on making medical scanners and other healthcare technology.
- Energy 🔋 Spinning off in early 2024. This business will focus on GE’s gas-power and renewable energy businesses, making turbines to provide electrical power.
- Aviation ✈️ Once both companies split off, this will be the remaining GE. It will focus on making jet engines for passenger and military planes.
This sounds good. Shares of GE surged over 2% 📈 after the announcement, as investors believe this could somehow save it from its heavy-debt position and make more money.
🐿️ : An interesting quote from Edison. “There’s a way to do it better – find it.” Maybe GE has found a “better” way?