Last Week In Tech - Company Break-Ups 11/17/2021
Last week was quite busy in tech news, let's jump right in.
General Electric (GE)
General Electric, also known as GE, kicked it off early by announcing something big, a split-up. Founded April 15, 1892, by inventor Thomas Edison, GE has been a trusted household brand for well over a century. There probably aren't that many people who haven't owned a GE product at some point, whether it be a washer/dryer, toaster, or a lightbulb. But did you know that selling home appliances hasn't been GE's only interest? For the past 80 years GE has been a pioneer in both Energy and Aviation, and GE Healthcare was formed in September 1994. GE laid plans Tuesday to split into 3 separate companies over the next few years: GE Energy, GE Aviation, & GE Healthcare.
Toshiba & GE must be on similar wavelengths, as Friday morning Toshiba announced they would be splitting into 3 companies as well. Most people nowadays recognize the Toshiba brand as laptop manufacturers, however, they too have been in business for a long time. The company was founded in Tokyo Japan, in 1875. 1875?! There were no computers back then! While that may be true, Toshiba has been around since the telegraph and stayed on the cutting edge of technology until it evolved into what it is today. In recent years Toshiba has unfortunately endured many scandals, and critics are attributing the split to the campaigning of activist shareholders.
Toshiba's long-term plan is to move efforts in energy and infrastructure to one company, semiconductors to another, and memory chips to the third.
Johnson & Johnson
While not actively involved with Tech, we feel that Johnson & Johnson still deserves a place in this post as, they too, announced a split-up. What is it with companies these days?
J&J, founded in 1886, got its start with baby powder in New Jersey. Now they are one of three companies to have developed a vaccine for covid-19. J&J, like Toshiba, has endured pitfalls and setbacks. Over 30,000 lawsuits have been filed against Johnson & Johnson, all claiming that their baby powder causes cancer. J&J plans to split into two companies, one focusing on consumer goods, and the other on pharmaceuticals.