General Electric is well-known to the Chinese because of the legendary CEO Jack Welch. Last year, Welch, who helmed GE through the last 20
years of the last century and sent the company to the peak of its listing value, passed away. A year later, the most successful and powerful
enterprise group that was once regarded as an "industrial idol" in history was broken up, which is embarrassing.
General Electric started from Edison’s light bulbs, and in its strongest era, it spanned the global power, lighting, aviation, television, radio, music,
electrical appliances, finance, and healthcare businesses and became a corporate behemoth. It is split, which also means that the capitalist
business model of this type of conglomerate (the so-called conglomerate) is coming to an end.
As GE CEO Kulp said yesterday: GE will be split into three global listed companies that are in the leading position in the industry. Each company
can focus more on its own field, allocate capital more tailored, and adopt changes. Flexible strategy.
Since Kulp took over General Electric in 2018, he has sold a lot of assets to cut costs and reduce General Electric’s huge debt. In 2016, General Electric
sold its home appliance business to China Haier for $5.4 billion. Last year, General Electric even sold the light bulb business on which it started.
Although the above products have made General Electric well-known to ordinary consumers around the world, in fact, it is GE Capital that really makes
GM reach the peak of its market value, which is the capital business that provides financing for large and small enterprises. But in March of this year, as
General Electric sold its aircraft leasing division, GE Capital no longer exists.
At its peak in early 2001, GE stock was worth more than US$500 billion, making it the most valuable company in the world second only to Microsoft.
Now the market value of GE is just over one-fifth of what it was then. Through the spin-off, GE hopes that each company can retain some leftover light,
get rid of the historical burden, and move on lightly.