overview

This page highlights the General Electric (GE) electronics, engineering, communications and finance group.

It covers -

• introduction
• beginnings
• GE and the NBC takeover
• RCA
• RKO

    beginnings

GE dates from the 1892 merger of Edison General Electric (embodying most of Thomas Edison's electrical patents) with competitor Thomson-Houston. The group initially encompassed lighting, gramophone, motor (particularly for streetcars), electricity generation and transmission interests but within a decade had expanded into machinery for business and domestic appliances. By 1912 it had assets of around US$132 million, annual sales of around US$89 million and 60,000 staff.

In 1905 GE formed Electric Bond & Share (EBASCO) to finance establishment and growth of electricity utilities. The group subsequently became one of the three dominant US gas and electricity utility holding companies - with control of eg American Power & Light, Idaho Power, Pennsylvania Power & Light, Texas Power & Light, Montana Power and Florida Power & Light - before spinning off its assets after 1943 following the Supreme Court's decision in Electric Bond & Share v SEC affirming the 1938 Public Utility Holding Co Act. EBASCO also expanded through investment in Latin America and other regions. GE distributed EBASCO's stock to its shareholders in 1924.

     GE and the NBC takeover

GE had revenue in 2003 of US$134.7bn, earnings of US$15.1bn and assets of US$575bn, with around 315,000 employees in over 100 nations. It ranks as the 5th largest US company by sales and is the 8th largest in the world. GE Capital, which accounts for over 50% of the group’s profits, would rank as the 9th largest company in the US and 30th largest in the world. 

Following the NBC Universal deal GE has been continuing to acquire and dispose of substantial assets, with for example acquisition of the UK-based Amersham radiopharmaceuticals group in 2003 for US$9.5bn.

As of June 2004 GE comprises

• Capital
• Appliances
• Industrial Products and Systems
• Medical Systems
• Power Systems
• Aircraft Engines
• Advanced Materials
• Technical Products and Services
• NBC

GE Capital embraces consumer credit cards, equipment leasing, health insurance, home mortgages, airplane leasing, consumer lending, commercial lending, large project financing and financial guaranty insurance. The Medical Systems Division includes magnetic resonance, ultrasound, and computed tomography scanners; patient monitoring systems; clinical information systems and the Patient Channel, a television network aimed at the captive audience in hospitals.

GE Power Systems products include nuclear reactors, turbines, compressors and generators. It also provides fuel and support services and equipment that supports oil and gas distribution. The Aircraft Engines Division manufactures and services jet and turboprop engines, along with marine engines and industrial power sources.

GE Advanced Materials encompasses GE Plastics (high performance polymers, plastics compounding, and sheet and films), GE Silicones (adhesives and sealants for industries ranging from construction to aerospace to healthcare), and GE Quartz (material for semiconductors, lamps, fibre optics and crucibles).

     RCA

The history of RCA parallels that of Westinghouse: stunning early success followed by a mix of technological innovation, engineering excellence and strategic indirection as executives wandered on a diversification safari rather than maintaining existing markets and fending off expansion by Japanese and European consumer electronics groups such as Matsushita and Electrolux.

     RKO

The Radio Keith Orpheum film group - more commonly known as RKO and distinguished by its radio transmission tower logo - integrated feature film production, distribution and exhibition at the height of the 'studio system'. It was was formed in 1929 when RCA merged its film interests with the Film Booking Office (FBO) studio and KAO, absorbing Pathe Exchange in 1930 and became the distributor for Disney.

In 1948, amid jitters about dismantling of the studio system and demands for investment in television RCA sold a controlling stake to Howard Hughes.

Hughes exited in 1955, splitting RKO into RKO Pictures (a production and operation operation) and RKO Theaters (real estate and cinema operations). RKO Pictures was sold to General Teleradio, an arm of emerging conglomerate General Tire & Rubber, for US$25 million. In 1959 it was rebadged as RKO General Inc, exploiting its film library (with many features ultimately acquired by Ted Turner) and selling its studios to Desilu Productions. General Teleradio subsequently expired in controversy over alleged impropriety at its television broadcasting stations. RKO Theaters was absorbed by Cineplex Odeon.

RKO and its successors are considered in a more detailed profile on the Ketupa.net site.





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