Here's what's left of General Electric after the sale of its biopharmaceutical business for $ 21 billion



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<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "General Electric (GE) stocks jumped on Monday after announcing the & nbsp;sale& nbsp; of its biopharmaceutical activities in Danaher for $ 21 billion in cash. "Data-reactid =" 15 "> General Electric (GE) shares jumped on Monday after announcing the sale of its biopharmaceutical activities to Danaher for $ 21 billion in cash.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "GE President and CEO Larry Culp – who led Danaher for over ten years before joining GE in October – & nbsp;m said& nbsp; that he was "focused on managing the remaining core business". "data-reactid =" 16 "> GE President and CEO Larry Culp, who has led Danaher for more than a decade before joining GE in October, said he was" Focused on the management of the remaining core business. "

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Those & nbsp;main activities remaining& nbsp; include aviation, energy and renewable energies. The company is also interested in 3D printing, financial services and digital services. "Data-reactid =" 17 "> The main activities that remain include aviation, energy and renewable energies.The company is also interested in 3D printing, finance services, and digital services.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "One of the largest US conglomerates, GE had a few months, it was & nbsp;launched the Dow& nbsp; last year and & nbsp;to manage on your own& nbsp; part by part. "data-reactid =" 38 "> One of the largest US conglomerates, GE has had a hard time, it was launched the Dow Jones last year and has been reprimanded part-by-part .

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The company had indicated last year that & ## 39; she & nbsp;split of GE Healthcare& nbsp; in order to reduce its debt. "data-reactid =" 39 "> Last year, the company announced its intention to separate from GE Healthcare in order to reduce its debt.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "He also declared that he would sell his stake in the Baker Hughes oil services group, & nbsp;to sell its rail business,& nbsp; and & nbsp;Discard& nbsp; of its iconic division of light bulbs. "data-reactid =" 40 "> It also announced the divestiture of its stake in oil services group Baker Hughes, the divestiture of its rail operations and the removal of its iconic activities.

In this archive photo from January 16, 2018, the General Electric logo is displayed at the top of its global operations center in the development of banks in downtown Cincinnati. (AP Photo / John Minchillo, File)

"The last of the centenary race"

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "GE was born from a merger between Thomas Edison Edison Electric Company and Thomson-Houston Electric Company in 1892, which was & nbsp;arranged by financier JP Morgan. For the next century, he grew up with the economy. He became a founding member of the Dow in 1896. "data-reactid =" 62 "> GE was born from the merger between Thomas Edison's Edison Electric Company and the Thomson-Houston Electric Company in 1892, organized by financier JP Morgan. During the next century, he grew up with the economy and became a founding member of the Dow in 1896.

"GE brought electricity to Americans, from home appliances to kitchens … She left her mark, she did a lot of her chores," said Aswath Damodaran, a professor of finance at the US. University of New York at Yahoo Finance.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In 2000, GE generated almost & nbsp;$ 130 billion in revenue. At its peak, the global giant was a lender, a manufacturer of home appliances, a media giant (with NBCUniversal) and a health care company. "Data-reactid =" 64 "> In 2000, GE generated a turnover of nearly $ 130 billion.At its heyday, the global giant was a lender, a manufacturer of household appliances, a giant media (with NBCUniversal) and a health care business.

GE had a 21st century difficult. (Graphic: Yahoo Finance)

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The cash cow of GE was GE Capital, its services financial but the financial crisis of 2008 & nbsp;turned this lucrative business into a liability, and the company has not recovered yet since. However, according to Damodaran, the technology giants of today could not reproduce their longevity. "Data-reactid =" 85 "> GE's cash cow was GE Capital, its financial services unit.The crisis turned this lucrative business into a liability, and the company has not yet fully recovered since , but his achievements are remarkable and his longevity probably could not be replicated by the tech giants today, according to Damodaran.

"GE is going to be the last of the 100 year race. Companies of this century have no chance of lasting 100 years – Facebook and Google. Technology is a very hard project manager, "he said.

The remaining main activities of GE

<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Aviation"data-reactid =" 88 ">Aviation

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "GE is one of the largest manufacturers of jet engines in the world, for commercial and military aircraft, the company manufactures & nbsp;GEnx& nbsp; for the Boeing 787 Dreamliner and the Boeing 747-8. This also makes the & nbsp;GE90, one of the most powerful engines in the world, for Boeing 777s, as well as & nbsp;CF6, which feeds various flights of Airbus and Boeing. "data-reactid =" 89 "> GE is one of the world's largest manufacturers of jet engines for commercial and military aircraft, producing GEnx for the Boeing 787 Dreamliner and Boeing 747-8. one of the most powerful engines in the world for the Boeing 777s, as well as the CF6, which powers a variety of Airbus and Boeing flights.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Meanwhile, & nbsp;GE Capital Aviation Services& nbsp; is, according to GE, the largest lessor and lender of commercial aircraft and engines in the world. "data-reactid =" 90 "> According to GE, GE Capital Aviation Services is the largest lessor and lender of commercial vehicles.

<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Power"data-reactid =" 91 ">Power

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This & nbsp;division in difficulty& nbsp; is known for its natural gas power plants and also includes steam, nuclear power and network services. GE Power says it generates & nbsp;one third of the world's electricity. "data-reactid =" 92 "> This distressed division is known for its natural gas power plants and also includes steam, nuclear power and grid services, and GE Power reports that it produces one-third of the electricity World.

An employee of the American multinational General Electric (GE) is working on a gas turbine at the GE plant in Belfort, eastern France, on October 27, 2015. (Photo: SEBASTIEN BOZON / AFP / Getty Images)

<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Renewable energy"data-reactid =" 117 ">Renewable energy

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "GE renewable energy uses onshore and offshore wind and hydro technologies, as well as other technologies such as concentrated solar power. "data-reactid =" 118 "> GE Renewable Energy uses onshore and offshore wind and hydroelectric technologies, as well as other technologies such as concentrated solar power.

Remaining parts of GE

<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Additive"data-reactid =" 120 ">Additive

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" GE has invested heavily in additive machines, namely: 3D Printers: in 2016, it & nbsp;spent more than $ 1 billion& nbsp; for the control of holdings in two major 3D printer manufacturers: Arcam AB (Sweden) and Concept Laser (Germany). In its 2016 report to shareholders, & nbsp;former CEO Jeff Immelt said that& nbsp; The company planned to generate $ 1 billion worth of equipment and additive services by 2020. "data-reactid =" 121 "> GE has invested heavily in additive machines, also known as 3D printers In 2016, she spent more than $ 1 billion for controlling holdings in two major 3D printer manufacturers – the Swedish Arcam AB and the German Concept Laser.In her 2016 report to shareholders, the company's Former CEO Jeff Immelt said the company plans to generate $ 1 billion in revenue from additive equipment and services by 2020.

<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Capital city"data-reactid =" 122 ">Capital city

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The jewel of GE was hit by the financial crisis of 2008 GE's finance arm granted commercial loans and leases to support GE's industrial business units, which analysts attributed to the company with minimal or no value, & nbsp;according to Barron. "data-reactid =" 123 "> GE's crown jewel was hit by the 2008 financial crisis and has not recovered since then GE's financial arm provides commercial loans and credits Supporting GE's Industrial Business Units Analysts have value for the company, according to Barron.

<h3 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Digital"data-reactid =" 124 ">Digital

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Created in 2015, GE's digital business combines the company's software center, software and business IT teams, and Wurldtech cybersecurity company technology. "Data-reactid =" 125 "> Established in 2015, GE's digital business combines the company's software center, business software and technology teams with the Wurldtech cybersecurity company.

An employee unveils Tuesday, June 13, 2017 the turbine components of the General Electric Co. plant in Veresegyhaz, Hungary. General Electric has obtained Monday the approval of the US Department of Justice for the consolidation of its oil and gas activities with Baker Hughes Inc .: Akos Stiller / Bloomberg via Getty Images

& # 39; Sell the pieces & # 39;

Former CEO John Flannery was optimistic about GE's future.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Take a new look at GE … c & # 39; is gone through a period of incredible adversity, "said Flannery in a & nbsp;interview with Mic. "Many people have criticized him and said," Hey, this is not an interesting business. It's an amazing company. "" Data-reactid = "148"> "Take another look at GE … He went through a period of In an interview with Mic, Flannery said:" Many people have written it off and said, "Hey it's not an interesting business. It's an amazing company. "

But observers of the industry were not enthusiastic.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "While some companies manage to come back from the dead as Disney and IBM in the 1980s, "most of the time, the story is very similar to that of GE and Procter & amp; Gamble – historical brands in which investors take over the company and sell it in pieces "& nbsp;Steve Blank, entrepreneur and adjunct professor at Stanford University, had previously told Yahoo Finance. "data-reactid =" 150 "> Some companies manage to come back from the dead like Disney and IBM in the 1980s," most of the time, The story is very similar to that of GE and Procter & Gamble: legendary brands in which investors take over the company and sell it in pieces ", had already told Yahoo Finance Steve Blank, entrepreneur and adjunct professor at Stanford University.

Blank added that "Flannery is doing an option – because he has no other choice – to sell the pieces."

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This post was originally published July 2, 2018 and updated following GE's sale of its biopharmaceutical business."data-reactid =" 152 ">This post was originally published July 2, 2018 and updated following GE's sale of its biopharmaceutical business.

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