) recently sold its remaining 49% equity stake in the
NBCUniversal (NBCU) joint venture and the NBCU floors in 30
Rockefeller Center to
) for $18.1 billion, including $12.0 billion in cash, $4.0
billion in guaranteed debt, and $0.7 billion of preferred
General Electric already has business relationships with
Comcast. In Dec 2009, General Electric reduced its holding in
NBCU from 80% to 49% with Comcast as the majority partner. The
proceeds from the transaction were utilized to make acquisitions
in Energy and Oil & Gas businesses.
The strategic move is aimed at returning more cash to
shareholders and focusing more on its industrial business. The
company has currently increased its share repurchase authority to
$35 billion, out of which approximately $23 billion is yet to be
fulfilled. With significant cash from the divesture, General
Electric intends to accelerate its share repurchase program to
$10 billion in 2013.
Additionally, the company expects pre-tax gain of
approximately $1 billion in 2013. Also, the company expects the
cost savings to exceed the previous target of $2 billion in 2014.
The gains from this sale will enable General Electric to
accelerate its restructuring plans and provide further momentum
to margin expansion.
General Electric is one of the most diversified technology and
financial service corporations in the world, competing with
industry big wigs such as
Federal Signal Corp
). Its segments include Power & Water, Oil & Gas, Energy
Management, Aviation, Healthcare, Transportation, Home &
Business Solutions, and GE Capital.
General Electric currently has a Zacks Rank #4 (Sell).
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