Cloud over conglomerates

A related problem in conglomerates is a complex web of crossholdings of shares among subsidiary and associate companies

The conglomerate avatar of General Electric died last week at age 129. No tears were shed for what was once a global symbol of American business power. Instead, investors cheered the formal splitting of GE into three public companies. It’s easy to see why: The conglomerate’s revenue for 2020 was $79.62 billion, a far cry from the $180 billion-plus revenue it booked in 2008. It was also knocked off the Dow Jones Industrial Average in 2018 after being part of the blue-chip index since 1896.     

GE Chief Executive Larry Culp’s strategy is in stark contrast to the path pursued