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How Breaking Up GE Saved the Company: Analysis of the Three New Companies’ Shares

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Larry Culp, the CEO of General Electric, has been credited with saving the company by breaking it up. General Electric, once the most valuable company in the world, had been struggling for years due to poor management decisions and a lack of focus. However, Culp’s bold decision to break up the company into three separate entities has breathed new life into the struggling conglomerate.

A broken chain with the initials "GE" lies in pieces, while a figure in the distance works to piece it back together

The breakup strategy involved spinning off GE’s healthcare and oil and gas businesses, leaving behind a leaner, more focused company that can better compete in today’s fast-paced business environment. The move was met with scepticism at first, with many analysts questioning whether it was the right decision. However, Culp’s vision has paid off, as shares of the three new companies have been performing well, and investors are beginning to take notice.

The impact on shareholders has been positive, with many seeing a significant increase in the value of their investments. The future of GE looks bright, with the company now better positioned to take advantage of emerging technologies and trends. While there are still challenges ahead, Culp’s leadership and strategic vision have put General Electric back on track.

  • Larry Culp saved GE by breaking it up into three separate entities.
  • The breakup strategy has resulted in positive outcomes for shareholders.
  • The future of GE looks bright, with the company now better positioned to take advantage of emerging technologies and trends.

The Breakup Strategy

A crumbling puzzle of interconnected gears, each labeled with a different division of General Electric, symbolizing the impending breakup of the company

Larry Culp, the CEO of General Electric (GE), took a bold step to save the company from its financial troubles by breaking it up. This strategy involved spinning off the non-core businesses of the conglomerate and focusing on the core businesses that had the potential to generate profits. The following are the key steps that Larry Culp took to implement his breakup strategy.

Identifying the Core Businesses

Larry Culp identified the core businesses of GE that had the potential to generate profits. These businesses included aviation, healthcare, and power. He decided to focus on these businesses and divest the non-core businesses that were not generating profits. This allowed GE to reduce its debt and focus on the businesses that had the potential to generate profits.

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The Spin-Off Process

The spin-off process involved creating three new companies out of the existing businesses of GE. These companies were GE Aviation, GE Healthcare, and GE Power. The spin-off process was completed in March 2019, and the three new companies started trading as independent entities. This allowed the new companies to focus on their core businesses and generate profits.

Financial Restructuring

The breakup strategy also involved financial restructuring. This included reducing debt, improving cash flow, and strengthening the balance sheet. The financial restructuring allowed GE to reduce its debt burden and improve its financial position. This, in turn, allowed the company to focus on its core businesses and generate profits.

In conclusion, Larry Culp’s breakup strategy saved GE from its financial troubles by focusing on the core businesses and divesting the non-core businesses. The strategy allowed GE to reduce its debt burden, improve its financial position, and focus on the businesses that had the potential to generate profits.

Impact on Shareholders

GE's transformation depicted through shattered company logo, symbolizing Culp's breakup strategy. Shareholders' reaction evident in falling stock prices

Larry Culp’s decision to break up General Electric (GE) had a significant impact on the company’s shareholders. The move was aimed at unlocking value for investors by creating three independent companies. This section explores the impact of the breakup on GE’s stock performance and investor confidence.

Stock Performance

The breakup of GE has been well-received by investors, with the stock price rising by over 30% since the announcement. The three new companies – GE Aviation, GE Healthcare, and GE Renewable Energy – are expected to have strong growth prospects, which has contributed to the positive sentiment among investors.

Investor Confidence

The breakup of GE has also helped to restore investor confidence in the company. Prior to the breakup, GE had been struggling with a range of issues, including high levels of debt and underperforming businesses. The breakup has allowed GE to focus on its core businesses, which is expected to lead to improved financial performance.

Investors are also optimistic about the leadership of Larry Culp, who has a track record of turning around struggling companies. Culp’s decision to break up GE has been seen as a bold move that demonstrates his commitment to creating value for shareholders.

Overall, the breakup of GE has had a positive impact on the company’s shareholders. The move has unlocked value for investors and restored confidence in the company’s future prospects.

The Future of GE

General Electric's breakup: shattered logo pieces, scattered across a futuristic cityscape, with a sense of both chaos and potential

Independent Companies

Larry Culp’s decision to break up General Electric into three independent companies – GE Aviation, GE Healthcare, and GE Power – has been a significant move to restructure the company. It is expected that the new independent companies will be more agile, efficient, and able to focus on their respective businesses. The move will enable each company to make decisions based on their unique needs and priorities, which will result in better performance and growth.

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Market Predictions

The market is optimistic about the future of the three independent companies. According to a report by SSRN, breaking up GE would be challenging because of the financials of its units. However, the report also suggests that the future of the other businesses will be determined by Michael Culp’s ability to execute his plan successfully.

The report also indicates that the shares of the three new companies look attractive, which is a good sign for investors. It is expected that the companies will be able to generate strong cash flows and returns, which will drive their growth in the future.

Overall, the future of GE looks promising, and the decision to break up the company is expected to yield positive results. The independent companies will be able to focus on their businesses and make decisions based on their unique needs and priorities, which will result in better performance and growth. Investors are optimistic about the future of the new companies, and it is expected that they will generate strong cash flows and returns, which will drive their growth in the future.

Frequently Asked Questions

GE's logo shattered into pieces, symbolizing the company's breakup. The pieces lay scattered on the ground, representing the end of an era

How will GE’s breakup impact current shareholders?

GE’s breakup will have a significant impact on current shareholders. The company plans to spin off its healthcare, aviation, and energy businesses into separate companies, which will each have their own stock. Current GE shareholders will receive shares in each of the new companies, and the value of their holdings will depend on the performance of each individual company.

What are the expected benefits of splitting GE into separate companies?

Breaking up GE is expected to create more focused and efficient businesses, with each company able to better allocate resources and focus on its core competencies. The move is also expected to unlock value for shareholders, as each company will be better positioned to compete in its respective market.

What will be the focus of each company formed from GE’s breakup?

The healthcare company will focus on medical technology and life sciences, while the aviation company will focus on aircraft engines and related services. The energy company will focus on power generation, renewable energy, and grid solutions.

How does the spinoff affect GE’s long-term business strategy?

The spinoff is part of a broader effort by GE to restructure its business and focus on its core competencies. The company has struggled in recent years, and the spinoff is seen as a way to streamline operations and improve profitability.

What are the timelines for GE’s planned spinoffs?

The spinoff of GE’s healthcare business is expected to be completed in 2020, while the aviation and energy spinoffs are expected to be completed in 2023.

How will the market valuation of the new GE companies compare to the original?

It is difficult to predict how the market valuation of the new GE companies will compare to the original. However, the spinoff is expected to unlock value for shareholders, and each company will be better positioned to compete in its respective market.


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Biography

Tributes Pour In for Rob Reiner, 78, as Hollywood Mourns a Storyteller Who Shaped an Era

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The death of filmmaker Rob Reiner at age 78 has prompted an outpouring of tributes across the entertainment world, as colleagues, actors, and cultural figures reflect on the legacy of a director whose work helped define modern American cinema. Reiner and his wife, Michele Singer Reiner, were found dead in their Los Angeles home, according to police statements released this week.

Reiner’s passing—under circumstances now the subject of an active homicide investigation—has sent shockwaves through Hollywood and beyond. Authorities confirmed that the couple’s son, Nick Reiner, has been taken into custody and “booked for murder,” though charges have not yet been formally filed. The Los Angeles Police Department has said the case remains open as detectives continue their inquiry.

A Career That Spanned Generations

Rob Reiner’s influence on American storytelling is difficult to overstate. From the comedic brilliance of This Is Spinal Tap to the emotional resonance of Stand By Me, When Harry Met Sally, and A Few Good Men, Reiner’s films became cultural touchstones—quoted, revisited, and taught in film schools for decades.

His work blended humor with humanity, often exploring the fragile, complicated bonds between people. Reiner’s films were rarely just entertainment; they were emotional experiences that lingered.

Colleagues described him as a director with an uncanny ability to draw out vulnerability from actors while maintaining a light, collaborative set. “Rob had a way of making you feel safe enough to take risks,” one longtime collaborator said in a tribute posted shortly after news of his death broke.

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A Loss Felt Across Hollywood

As news spread, tributes began flooding social platforms and industry circles. Actors who grew up watching his films shared memories of the first time they encountered The Princess Bride or Misery. Directors spoke of Reiner’s craftsmanship—his ability to move seamlessly between genres without losing his signature warmth.

Industry veterans noted that Reiner’s career bridged eras: from the golden age of network television, where he first gained fame on All in the Family, to the rise of prestige filmmaking in the 1980s and 1990s, and finally to the streaming era, where his classics found new audiences.

His death, many said, marks the end of a particular Hollywood lineage—one rooted in character-driven storytelling, emotional honesty, and a belief that films could be both deeply personal and universally resonant.

A Family Tragedy Under Public Scrutiny

The circumstances surrounding Reiner’s death have added a layer of heartbreak to the tributes. Police confirmed that both Reiner and his wife were found dead in their Brentwood home, and that their son Nick was arrested shortly thereafter. The case has drawn intense media attention, with officials urging the public to allow investigators space to complete their work.

Despite the grim backdrop, those who knew Reiner have focused their public statements on his life rather than the tragedy. “Rob Reiner changed the way America tells stories,” one filmmaker wrote. “His films helped us understand ourselves.”

A Legacy That Will Endure

Reiner’s influence will continue to ripple through Hollywood for generations. His films remain staples of American culture—quoted at weddings, referenced in political debates, and rediscovered by new audiences every year.

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For many, the loss feels personal. Reiner’s work was woven into the fabric of everyday life: the comfort of a familiar line, the catharsis of a well-crafted scene, the joy of a story told with sincerity.

As Hollywood mourns, one truth is clear: Rob Reiner didn’t just make movies. He made memories.


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Corruption

Transparency International Pakistan releases NCPS 2025

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ISLAMABAD—Transparency International Pakistan (TIP) on Tuesday released its comprehensive National Corruption Perception Survey (NCPS) 2025, presenting a mixed picture of public sentiment on corruption, anti-graft efforts, and governance across the country.

The survey, conducted with 4,000 respondents from all four provinces, reveals that while a significant majority of citizens did not report paying a bribe in the last year, three key public sectors—the Police, Tender/Procurement, and the Judiciary—continue to be perceived as the most corruption-prone institutions.

Police Top List Despite Perception Improvement

According to the NCPS 2025 findings, the Police remains the most corrupt sector in the eyes of the public, cited by 24% of respondents nationwide. This is followed by the Tender and Procurement process at 16%, and the Judiciary at 14%.

However, the report highlighted a subtle but “notable” positive shift in public perception regarding the Police, registering a 6% improvement in perceived behaviour and service delivery compared to the previous survey.

Low Bribery Rate vs. High Dissatisfaction

The survey’s most encouraging statistic is that a majority of citizens (66%) reported they did not feel compelled to pay a bribe for public services in the past 12 months, which TIP considers a strong indicator of perceived progress in service delivery. Provincially, Sindh reported the highest rate of citizens encountering a demand for a bribe at 46%.

Despite the low rate of personal bribery, public satisfaction with the government’s overall efforts to combat corruption remains low. A significant 77% of respondents nationwide expressed “low satisfaction” or were “not satisfied” with the government’s anti-corruption drive.

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The public identified the three major causes driving corruption as a lack of accountability (15%), lack of transparency and limited access to information (15%), and delays in the disposal of corruption cases (14%).

Demand for Accountability of Anti-Graft Bodies

The survey findings reflect a strong public demand for institutional reform and accountability. An overwhelming 78% of Pakistanis believe that anti-corruption institutions like the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) should themselves be more accountable and transparent.

Citizens also proposed a blueprint for curbing corruption, prioritising:

  • Enhancing accountability (26%)
  • Limiting discretionary powers (23%)
  • Strengthening Right to Information laws (20%)

The report also found a notable lack of awareness regarding reporting channels, with 70% of citizens being unaware of any official corruption reporting mechanism. Furthermore, 42% stated they would feel safe reporting corruption only if strong whistleblower protection laws were in place.

Economic Stability and Political Finance

On economic matters, approximately 58% of respondents indicated that the government has either fully or partially stabilised the economy, crediting the International Monetary Fund (IMF) programme and the country’s exit from the Financial Action Task Force (FATF) Grey List. However, 57% reported a decline in their purchasing power over the past year.

The survey also highlighted a strong public desire for clean electoral financing, with a combined 83% of respondents supporting either a complete ban or strict regulation of business funding to political parties.

In response to the report, Prime Minister Shehbaz Sharif welcomed the survey, stating that the large number of respondents who reported not encountering corruption during his government reflects the public’s recognition of the reforms aimed at transparency and economic recovery.

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For more details on the survey’s public opinion findings, watch this report: Transparency International Report on Corruption – Public Opinion – 9 Dec 2025.


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Entertainment

How Netflix Stole Warner Bros from David Ellison: Old Hollywood’s Miscalculation

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For two decades, Netflix has been dismissed as a disruptor that would eventually plateau. Legacy Hollywood believed its dominance was temporary, a fad that would fade once the old guard flexed its muscle. Yet in 2025, the streaming pioneer pulled off a coup that stunned the industry: Netflix outmanoeuvred David Ellison’s Skydance and secured Warner Bros, rewriting the rules of entertainment economics.

Macro Context: Streaming’s Rise and Hollywood’s Decline

The streaming wars have reshaped the global media landscape. Netflix, once a DVD‑by‑mail service, now commands billions in revenue and a subscriber base that dwarfs traditional cable. Meanwhile, legacy studios like Warner Bros Discovery struggled under debt, fragmented audiences, and outdated business models.

David Ellison’s Skydance, backed by ambition and capital, seemed poised to rescue Warner Bros. Yet Netflix’s strategic patience, global reach, and ability to monetise content across platforms proved decisive.

David Ellison’s Bid: Ambition Meets Reality

Ellison’s attempt to acquire Warner Bros was emblematic of Hollywood’s old guard—ambitious, well‑funded, but ultimately constrained by legacy thinking. Skydance’s merger talks with Paramount highlighted Ellison’s vision of building a modern studio empire. But when it came to Warner Bros, Netflix’s agility and scale proved insurmountable.

  • Skydance Strategy: Focused on blockbuster franchises and traditional studio models.
  • Netflix Strategy: Leveraged global subscriber data, AI‑driven content recommendations, and diversified revenue streams.
  • Outcome: Ellison underestimated Netflix’s ability to play the long game.
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Warner Bros: A Legacy Studio Recast

Warner Bros, once synonymous with Hollywood glamour, became a symbol of industry decline. Debt burdens, misaligned leadership, and fragmented IP portfolios left it vulnerable. Netflix’s acquisition was not just a business deal—it was a cultural takeover.

By absorbing Warner Bros, Netflix gained access to iconic franchises, a century of cinematic heritage, and a foothold in theatrical distribution. More importantly, it signaled that streaming had officially eclipsed legacy Hollywood.

Opinion: Why Old Hollywood Misread Netflix

As a senior columnist, I argue that Hollywood underestimated Netflix’s long game. For years, executives dismissed streaming as secondary to theatrical releases. They failed to grasp that Netflix was not just a content distributor—it was a data‑driven entertainment ecosystem.

Netflix’s ability to predict audience behavior, scale globally, and monetize IP across formats gave it an edge Ellison and others could not match. The Warner Bros deal is proof that the future belongs to platforms that combine technology with storytelling.

Conclusion

Netflix’s acquisition of Warner Bros is more than a headline—it’s a turning point. David Ellison’s failed bid underscores the limits of old‑guard Hollywood thinking. The lesson is clear: streaming is not the future, it is the present.

For policymakers, investors, and audiences, the message is unmistakable: Netflix didn’t just buy Warner Bros—it rewrote the rules of Hollywood.


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