Umair Gaines
The General Electric Company (GE) was founded in 1892 through the merger of the Edison General Electric Company and the Thomson-Houston Electric Company. Thomas Edison, considered one of the greatest inventors and businessmen of his time, founded the Edison General Electric Company in 1889 with the backing of powerful financiers such as J.P. Morgan and members of the Vanderbilt family. The Thomson-Houston Electric Company was founded by Elihu Thomson and Edwin Houston, who held several patents for their development of arc lighting.
| Characteristics | Values |
|---|---|
| Year founded | 1892 |
| Founders | D.O. Mills, T.J. Coolidge, Hamilton M. Twombly, Frederick L. Ames, Thomas Edison, Elihu Thomson, Edwin Houston, Charles A. Coffin |
| Type of company | Multinational conglomerate |
| Headquarters | Boston |
| Industries | Aerospace, energy, healthcare, lighting, locomotives, appliances, finance |
| Employees | 305,000 |
| Revenue | $134.19 billion (as of 2003) |
| Ranking | 33rd largest firm in the US by gross revenue (as of 2020) |
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What You'll Learn
- Thomas Edison founded Edison General Electric Company in 1889
- Edison General Electric Company merged with Thomson-Houston Electric Company in 1892
- The merger formed General Electric, with Charles Coffin as its president
- General Electric was one of the original 12 companies listed on the Dow Jones Industrial Average in 1896
- General Electric has diversified into many industries, including energy, aviation, and healthcare
Thomas Edison founded Edison General Electric Company in 1889
Thomas Edison, considered one of the greatest inventors and businessmen of his time, founded the Edison General Electric Company in 1889. Edison founded and co-founded several companies in multiple industries in the late 19th century, many of which were related to electricity, such as lamps, dynamos, electric motors, lighting fixtures, and sockets.
The Edison General Electric Company was formed when Drexel, Morgan & Co.—a company founded by J.P. Morgan and Anthony J. Drexel—financed Edison's research and helped merge several of his separate companies under one corporation. The new company was incorporated in New York on April 24, 1889, and acquired the Sprague Electric Railway & Motor Company in the same year. The merger consolidated Edison's three electric light manufacturing companies (Edison Lamp Company, Edison Machine Works, and Bergmann & Company), with the patent-holding company, Edison Electric Light Company.
However, the Edison Illuminating Company, which later became Consolidated Edison, was notably not part of this merger. This merger was a result of the "War of Currents", a competition between Edison's direct current power and the alternating current power systems of his rivals, particularly Westinghouse and the Thomson-Houston Electric Company. Edison's anti-AC stance was no longer controlling the company by 1889, and his subsidiaries were pushing to add AC power transmission to their systems.
Three years later, in 1892, the Edison General Electric Company merged with the Thomson-Houston Company to form General Electric. This merger put the board of Thomson-Houston in charge of the new company, with Charles Coffin, the former president of Thomson-Houston, becoming the president and chairman of General Electric.
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Edison General Electric Company merged with Thomson-Houston Electric Company in 1892
The General Electric Company (GE) was founded in 1892 through the merger of the Edison General Electric Company and the Thomson-Houston Electric Company. The former was formed in 1889 when Drexel, Morgan & Co.—a company founded by J. P. Morgan and Anthony J. Drexel—brought together Edison's various companies under one corporation. Thomas Edison, considered one of the greatest inventors and businessmen of his time, founded several companies in multiple industries in the late 19th century, many of which were related to electricity.
The Thomson-Houston Electric Company, on the other hand, was founded by Elihu Thomson and Edwin Houston as the American Electric Company. In 1882, Charles Albert Coffin led a group of investors in purchasing this company, renaming it Thomson-Houston Electric Company, and moving its operations to Lynn, Massachusetts. By 1892, the company, under the leadership of Coffin, Edwin Rice, and Elihu Thomson, had grown into an enterprise with sales of $10,000,000 (approximately $339,000,000 in 2023) and 4,000 employees.
The merger between Edison General Electric and Thomson-Houston Electric brought together two of the largest companies in the emerging electrical industry. The merger had been under discussion since at least February 1891, when Thomson-Houston staff visited Edison's main plant in Schenectady. J.P. Morgan, Edison's chief financial backer, and Charles Coffin, president of Thomson-Houston, saw the merger as an opportunity to improve profitability. Indeed, the combined entity, General Electric, became one of the most valuable companies in the world, ranking 14th among the Fortune 20 in 2011.
D.O. Mills, T.J. Coolidge, Hamilton M. Twombly, and Frederick L. Ames were also instrumental in the formation of GE as they oversaw the merger between the two companies.
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The merger formed General Electric, with Charles Coffin as its president
The General Electric Company (GE) was founded in 1892 following the merger of the Edison General Electric Company and the Thomson-Houston Electric Company. The former was established in 1889 when Thomas Edison, considered one of the greatest inventors and businessmen of his time, consolidated several of his companies under one corporation, with the financial backing of J.P. Morgan and members of the Vanderbilt family. The Thomson-Houston Electric Company, on the other hand, was founded by Elihu Thomson and Edwin Houston, who held several patents for their development of arc lighting.
The merger that formed GE brought together two of the largest companies in the burgeoning electrical industry. The discussions surrounding the merger had been ongoing since at least February 1891, when the top staff of Thomson-Houston, based in Lynn, Massachusetts, visited Edison's main plant in Schenectady. J.P. Morgan, Edison's chief financial backer, and Charles Coffin, president of Thomson-Houston, explored the merger as a means to improve profitability.
Charles A. Coffin, a former shoe manufacturer, became the president and chairman of the newly formed GE. He had been the leading figure at Thomson-Houston prior to the merger. Coffin remained in his role as president until 1913 and continued as chairman until 1922.
Under Coffin's leadership, GE thrived and became one of the original 12 companies listed on the Dow Jones Industrial Average in 1896. The company continued to diversify and expand, entering new industries and acquiring other businesses. By 2000, GE was considered the most valuable company in the world.
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General Electric was one of the original 12 companies listed on the Dow Jones Industrial Average in 1896
The General Electric Company (GE) was founded in 1892 through the merger of the Edison General Electric Company and the Thomson-Houston Electric Company. GE was formed by inventors Thomas Edison, Elihu Thomson, and a committee consisting of D.O. Mills, T.J. Coolidge, Hamilton M. Twombly, and Frederick L. Ames.
GE was one of the original 12 companies listed on the Dow Jones Industrial Average when it was established in 1896. The Dow Jones Industrial Average was created more than 120 years ago, and GE remained on the index for 122 years, though not continuously. GE was removed from the Dow Jones Industrial Average in 2018, making it the last-standing member of the 1896 Dow.
GE was considered the most valuable company in the world in 2000 and was ranked 14th on the Fortune 500 list in 2011. However, the company began to struggle, and its stock fell significantly in the years leading up to its removal from the Dow Jones Industrial Average. GE's presence in various industries, such as energy, aviation, healthcare, and lighting, has shaped its long history.
Over time, GE has undergone several changes, including selling off divisions and assets, such as its appliances and financial capital divisions. The company has also faced challenges, such as revenue losses during the COVID-19 pandemic due to restrictions on air travel. Despite these difficulties, GE has continued to innovate and diversify its business, leaving a lasting impact on the business world.
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General Electric has diversified into many industries, including energy, aviation, and healthcare
General Electric (GE) was founded in 1892 through the merger of Edison General Electric Company and Thomson-Houston Electric Company. Since then, GE has diversified into numerous industries, including energy, aviation, and healthcare.
GE's involvement in the energy industry began during World War I and II, when the company developed aircraft turbo superchargers for military use. Over time, GE has expanded its energy business, with a focus on renewable and sustainable energy solutions. The company's Power and Water division, for example, develops products and technologies that harness resources such as wind and water to produce electric power.
In the aviation industry, GE Aviation is a leader in aircraft engines and related technologies. The company offers jet engines, aerospace systems, and equipment for both military and commercial aircraft. GE's aviation technology helps optimise fuel efficiency, reduce emissions, and enhance overall aircraft performance.
GE Healthcare, a leading global medical technology company, provides integrated solutions, services, and data analytics to hospitals and healthcare providers. The company's offerings include medical imaging and information technologies, medical diagnostics, patient monitoring systems, and drug discovery. GE Healthcare was spun off from GE in 2023 as a standalone public company, demonstrating the company's commitment to focusing on specific industries.
In addition to these core businesses, GE has also diversified into other sectors, including lighting, locomotives, appliances, and finance. The company's broad portfolio and global presence have contributed to its success and allowed it to navigate diverse economic landscapes effectively.
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Frequently asked questions
The General Electric Company (GE) was founded by multiple inventors and businessmen in 1892. Thomas Edison, considered one of the greatest inventors of his time, merged his company, Edison General Electric, with Thomson-Houston Electric Company in 1892 to form GE.
Elihu Thomson, the co-founder of Thomson-Houston, was also an inventor and electrical pioneer. He worked on early X-ray systems and was one of the first inventors to research and commercialize X-rays.
D.O. Mills, T.J. Coolidge, Hamilton M. Twombly, and Frederick L. Ames were also technically founders of GE as they oversaw the merger.
In 1889, Thomas Edison consolidated all his companies under Edison General Electric. This was made possible by powerful financiers such as J.P. Morgan and members of the Vanderbilt family.
In 1891, the potential merger was discussed when the top staff of Thomson-Houston visited Edison's main plant in Schenectady. The merger was finalised in 1892, bringing together two of the largest companies in the electrical industry.
Charles Coffin, the president of Thomson-Houston, became the president and chairman of the new company. Edison resigned from GE following the merger. GE began to buy up more companies and patents to improve its products and services. The company expanded into multiple industries, including aerospace, energy, healthcare, lighting, locomotives, appliances, and finance.
