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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

General Electric will split into three public companies

By Taylor Telford Washington Post

General Electric, one of the most storied brands in corporate America, will split into three stand-alone companies focused on health care, energy and aviation.

Long a symbol of American ingenuity, the industrial powerhouse has put its stamp on products from jet engines to lightbulbs, household appliances to X-ray machines. The 130-year-old conglomerate, which traces its lineage back to Thomas Edison, was once the pinnacle of business success, lauded for steady returns, strong corporate leadership and its relentless pursuit of growth.

But GE’s trademark qualities have come to haunt it in recent years as it struggled to slim down its bloated business to pay off debts in the wake of the financial crisis. On Tuesday, in what chief executive Larry Culp referred to as GE’s “defining moment,” the company concluded that it can unlock the most value by breaking up its remaining divisions.

GE Healthcare is slated to be spun off in early 2023, the company announced Tuesday, while the renewables and power units will be formed into new energy business in early 2024. The remaining business, GE, will focus on aviation and be led by chairman and chief executive Larry Culp.

“The world demands – and deserves – we bring our best to solve the biggest challenges in flight, health care, and energy,” Culp said in a statement outlining the plan. “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.”

GE products have brushed against every corner of modern life: radio and cable, planes, power, health care, computing, financial services. One of the original components of the Dow Jones industrial average, its shares were once among the most widely held in the country, the embodiment of corporate prowess and steady returns. In 2007, before the financial crisis, GE was the second-most valuable company in the world, alongside ExxonMobil, Royal Dutch Shell and Toyota.

GE, at one time the biggest company by market value, has fallen among with investors and struggled to evolve as the nation’s tech giants have taken up the mantle of innovation.