News Formal

Companies will take breakup pitch too far in 2022

  • 📰 Breakingviews
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Old-guard companies are at risk of dismemberment. With titans like General Electric or Toshiba breaking up, bankers will try to run the same playbook in 2022 for technology, energy and automotive firms transitioning their businesses. They should remember that casting out their best shots at staying relevant is a very different proposition from carving up the disparate pieces of an industrial conglomerate.

, which need to spend big to remodel their legacy business. Spinning out new initiatives might be tempting, especially for those whose profitability is crimped by all that spending. Intel’s shares fell 12% when it said its profits would take a hit as it invests in manufacturing. GM predicts its electric cars will only become as profitable as gas-powered cars in 2030.

But while GE’s healthcare team probably didn’t need a jet engine business under the same roof, GM’s car efforts benefit from integration. The company expects to save up to $30 billion in spending on the path to becoming fully electric by reusing existing equipment and upgrading its current plants, rather than starting from scratch. Intel’s cash flows are the lifeblood of its chip plants.

Nonetheless, some of these firms are already testing the waters, like Intel which in December said it would look to list its auto-oriented unit Mobileye. When taking meetings with bankers in 2022, it and others should be wary of offers to separate from the rest of the family jewels.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 470. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

One of the best things I love about investing with TarellaCampbel is that you only see positive results and see good winnings at all times from the team. With hardwork, passion and clarity as we know it.

All i can see in this post is Shiba 🤣

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Technology Employees Warn: Companies Should Expect More Uprisings In 20222021 was a flashpoint for tech workers who are becoming increasingly activist about their companies’ stances and policies. The employees predict intensified activism next year. How about Covid They made me homophobic. Just live like a human. We all getting hated everyday it’s your freedom and democracy
Source: Forbes - 🏆 394. / 53 Read more »

Technology Employees Warn: Companies Should Expect More Uprisings In 20222021 was a flashpoint for tech workers who are becoming increasingly activist about their companies’ stances and policies. The employees predict intensified activism next year.
Source: ForbesTech - 🏆 318. / 59 Read more »

Why Production Companies in 2022 Will Need to Get Big or Go HomeThe worldwide consolidation of independent producers looks likely to continue in 2022 as the global streaming boom pushes up both demand and budgets for film and TV series.
Source: THR - 🏆 411. / 53 Read more »