Beatrice Lang
General Electric (GE) has had a long history of acquisitions and sales since its incorporation in 1892. The company has touched many aspects of life, from electricity and lighting to aircraft engines and financial services. In 2024, GE completed a three-way split, breaking off from its past as a conglomerate and spinning off into three independent, public companies: GE HealthCare, GE Aerospace, and GE Vernova (energy). This marked the end of the 132-year-old company, which was once a global symbol of American business power and the most valuable public company in the world. So, rather than being sold, GE has been selling off parts of its business and transforming into separate entities.
| Characteristics | Values |
|---|---|
| Date of split | 2nd April 2024 |
| Number of companies split into | 3 |
| Names of new companies | GE Vernova, GE Aerospace, GE HealthCare |
| Ticker symbol for GE Vernova | GEV |
| Ticker symbol for GE Aerospace | GE |
| Date GE HealthCare became standalone company | 2023 |
| Date of RCA Corporation acquisition | 1985 |
| Date of RCA consumer electronics division sale | 1986 |
| Date of Kidder, Peabody & Co. sale | 1994 |
| Date of Aerospace business sale | 1993 |
| Date of Genpact founding | 1997 |
| Date of Appliance division sale | June 2016 |
| Date GE Lighting acquired by Savant Systems | 1st July 2020 |
| Date of Transportation division merger with Wabtec | 25th February 2019 |
| Date GE ended its run as a component of the Dow Jones Industrial Average | Mid-2018 |
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What You'll Learn
General Electric's three-way split
General Electric (GE), once the most valuable U.S. corporation and a global symbol of American business power, has broken up into three separate companies. The conglomerate, which was formed in 1892, had touched all parts of life, from bringing electricity to selling appliances and financing mortgages.
The three new companies are GE Aerospace, GE Vernova, and GE HealthCare. GE Aerospace will continue to make engines for Boeing and Airbus jets, generating more than 70% of its revenue from services. Analysts estimate the market value of GE Aerospace at more than $100 billion. GE Vernova, the energy spinoff, will trade on the New York Stock Exchange using the ticker symbol "GEV". The third unit, GE HealthCare, became a standalone company in 2023.
The breakup was led by CEO Larry Culp, who took over a company that was struggling due to bad investments and the 2008 financial crisis, which nearly bankrupted its most profitable business, GE Capital. Culp focused on paying off debt by selling assets and improving cash flows by streamlining operations and cutting overhead costs. Since 2018, GE has slashed more than $100 billion of debt and quadrupled its free cash flow. Its market cap has grown from about $92 billion to $192 billion.
The three-way split marks the end of the 132-year-old company and allows each new entity to focus on its core strengths and growth opportunities in the growth sectors of aviation, healthcare, and energy.
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GE Vernova's debut
On April 2, 2024, GE Vernova made its trading debut on the New York Stock Exchange under the ticker symbol "GEV". This marked the completion of General Electric's split into three publicly traded companies, with GE Vernova being the second company to be spun off. GE Vernova is an energy equipment manufacturing and services company headquartered in Cambridge, Massachusetts. It was formed from the merger and subsequent spin-off of General Electric's energy businesses: GE Power, GE Renewable Energy, GE Digital, and GE Energy Financial Services.
In the lead-up to the spin-off, GE Vernova, LLC was established on February 28, 2023, and was later incorporated as GE Vernova Inc. on April 2, 2024. The company is organized into four divisions based in the United States, France, and Denmark: Power, Gas Power, Steam Power, and Hydro Power. GE Vernova's mission is to electrify and decarbonize the world, advancing innovation in energy technologies to drive the transition to more sustainable energy solutions.
The company's stock performance on its first day of trading saw a 1.4% decline, with shares trading at $140. However, analysts estimate the market value of the remaining GE Aerospace entity at over $100 billion, benefiting from increased demand for aftermarket services. GE Vernova's first-quarter earnings report, scheduled for April 25, will provide further insights into the company's financial standing and performance as a separate entity.
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GE's computer division sale
In 1970, General Electric (GE) sold its entire computer business to Honeywell. This included the GE-600 series of computers, which Honeywell renamed as the Honeywell 6000 series. GE's work on computers began in the Electronics Laboratory, part of the Electronics Division in Syracuse, New York. The company entered the commercial data processing field, choosing Phoenix as the location for the Computer Department. GE's larger systems hardware, descended from the machines built for the Bank of America, was built in Phoenix, starting with the GE-225.
GE's involvement in computing began in the early years of computers, when it built smaller computers for military and aerospace applications, as well as mainframes. Notably, GE was involved in commercial data processing for the Bank of America. GE became a major player in computer manufacturing because, in the 1950s, it was the largest user of computers outside the US federal government and the first business in the world to own a computer. Its major appliance manufacturing plant, Appliance Park, was the first non-governmental site to host a computer.
Despite exiting the computer manufacturing industry in 1970, GE retained its timesharing operations for several years afterward. GE was a significant provider of computer timesharing services through General Electric Information Services (GEIS). GEIS offered online computing services that included GEnie. Between 1963 and 1964, GE collaborated with Dartmouth College on their Dartmouth BASIC project, which led to the development of a new timesharing system. This system was a great success and led to a late 1967 proposal for an improved version running on the 635.
In addition to its computer division sale in 1970, GE has undergone several other significant sales and acquisitions over the years. In 1985, GE reacquired the RCA Corporation for $6.28 billion to gain ownership of the NBC television network. In 1993, GE sold its Aerospace business to Martin Marietta. In 2014, GE attempted to sell its appliance division to Electrolux for $5.4 billion, but eventually sold it to Haier in 2016 due to antitrust filing against Electrolux. More recently, in 2024, GE completed a three-way split, breaking off from its history as a conglomerate and spinning off its healthcare, aerospace, and energy businesses as separate entities.
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GE's appliance division sale
General Electric (GE) has had a long history of acquisitions and sales of its various divisions. In 2014, GE attempted to sell its appliance division to Electrolux for $5.4 billion, but the deal was blocked by the US Department of Justice due to antitrust concerns. Instead, in June 2016, GE sold its appliance division to Haier, a Chinese manufacturer, for $5.6 billion. This sale allowed GE to focus on its more lucrative industrial manufacturing business, such as jet engines, industrial power systems, and locomotives.
The sale to Haier generated a lot of attention, with some expressing concerns about a Chinese company acquiring an American business. However, Chip Blankenship, the president and CEO of GE Appliances at the time, assured customers that there would be no significant changes in the short term. The GE name would remain on appliances, and customers would continue to receive the same support.
The appliance division sale was part of GE's broader strategy to streamline its operations and improve cash flow. Under CEO Larry Culp, GE focused on paying off its debt and recovering from bad investments and the 2008 financial crisis, which had brought the company close to bankruptcy. The sale of the appliance division contributed to GE's efforts to turn around its business and increase its market value.
In 2024, GE completed a three-way split, breaking off from its 132-year history as a conglomerate. The company separated its aerospace and energy businesses, with GE Aerospace retaining the GE symbol and the energy unit debuting as GE Vernova on the New York Stock Exchange. This marked the end of GE as a conglomerate and signalled a new direction for the company.
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GE's Aerospace business sale
GE Aerospace, formerly known as General Electric Company, is an American aircraft engine supplier that manufactures and services jet and turboprop engines. GE Aerospace is headquartered in Evendale, Ohio, and is the legal successor to the original General Electric Company, which was founded in 1892.
In July 2022, GE Aviation changed its name to GE Aerospace to reflect its broadened focus beyond aircraft engines. GE Aerospace became the only business line of the former General Electric conglomerate in April 2024 after completing the divestiture of its healthcare and energy divisions. The company has a long history in the aviation industry, dating back to the development of turbosuperchargers in the early 20th century.
GE Aerospace is a world-leading manufacturer and service provider for jet engines, partnering with other manufacturers such as CFM International, a joint venture with Safran Aircraft Engines. GE Aerospace holds 14% of the world's commercial aircraft engine market share, with its most successful partnership, CFM International, holding an additional 39%.
In April 2024, GE completed a three-way split, breaking off from its past as a conglomerate. The aerospace and energy businesses began trading on the New York Stock Exchange as separate entities, with GE Aerospace retaining the GE symbol and licensing the brand to GE HealthCare and GE Vernova. This marked the end of the 132-year-old conglomerate, once a global symbol of American business power, and culminated CEO Larry Culp's efforts to turn around the company's struggling financial situation.
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Frequently asked questions
As of 2024, General Electric (GE) has been broken up into three independent companies: GE Vernova, GE Aerospace, and GE HealthCare. GE Vernova is an energy company, GE Aerospace is an aircraft engine manufacturer, and GE HealthCare is focused on medical technology.
Over the years, GE has sold off various businesses and assets. In 1970, GE sold its computer division to Honeywell. In 1986, GE sold RCA's consumer electronics division to Thomson SA and purchased Thomson's medical technology division. In 1993, GE sold its Aerospace business to Martin Marietta. In 2016, GE sold its appliance division to Haier.
The breakup of GE into three companies was part of CEO Larry Culp's efforts to turn around the company, which had struggled due to bad investments and the 2008 financial crisis. The split allows each company to focus on its core strengths and growth opportunities in the aviation, healthcare, and energy sectors.
General Electric was formed in 1892 through a series of mergers involving Thomas Edison's Edison General Electric Company. It grew into a multinational conglomerate under Jack Welch, expanding into various industries and becoming one of the most valuable companies in the world. However, GE's profitability declined, and it struggled with debt and the impact of the coronavirus pandemic on its jet engine business.
