The GE Admiration Society?

So, I have to admit that I'm rather fond of General Electric, one of those big, bad corporate entities and the proud owner of NBC Universal. I worked for GE Infrastructure in the Small Commercial Engine Operations division of GE Aviation; trust me, I know exactly how complicated it sounds, and you've got every reason to be confused.

Now, I didn't particularly enjoy my time as a co-op there, but that had much more to do with my specific job description/responsibilities than it did with the company overall. In fact, I was continuously struck by the dedication people seemed to feel toward GE. It reminded me much more of the attitude I used to hear from my grandfather when he talked about how loyal employees and employers were to one another.

I think part of this enthusiasm and loyalty comes from a continuous self-promotion, but in a good way, re-affirming the many achievements of each small division of the company as well as corporate efforts in volunteerism and green technology. An example you may be familiar with:



Now, I always wondered how NBC fit into the mix, considering how different it was from the rest of the company. But after numerous brief exchanges with my doppelganger (NBC had a Stephen Asay working for it as well, and our email paths were often crossed in the corporate database), I came to realize an undeniable sense of camaraderie. And so it should come as no shock that GE chairman Jeffrey Immelt is denying rumors that the company is trying to offload NBC.

Here are excerpts from Immelt's letter to investors in the GE 2007 Annual Report:

Should we sell NBCU? The answer is no! I just don’t see it happening … not before the Beijing 2008 Olympic Games … not after the Olympic Games. It doesn’t make sense. The business has outperformed its competition and the GE average for the last 20 years. Our diversified content position is very strong. Content is increasing in value in a digital world. We are in a good cycle, with momentum around the Beijing Olympics, the U.S. elections, and the 2009 Super Bowl. NBCU benefits from GE’s global footprint, financial strength, and human resource skills. And, NBCU provides us with a leading perspective on digital transformation. NBCU adds value to GE, and GE adds value to NBCU. This is true now, and it will be true in the long term as well.

I know this whole letter is really just PR spin meant to make investors feel good about the progress of the company, but I think Immelt makes some points that should make all of us feel good. That the chairman of such a major corporation is talking about the value of "digital transformation" can certainly be a sign of hope for journalism. As Lisa Williams (founder of H2otown) in our class the other day, maybe it's time for the journalists to go to the companies and make some changes instead of just waiting for the apocalypse to come.

Another excerpt:

NBCU is a great example of a business that becomes more valuable as its market evolves. In 2002, 75% of its earnings derived from NBC broadcast television. But we realized that the broadcast model, while important, would grow more slowly in a digital world. We have refocused NBCU in global markets around fast-growth cable, film, and digital businesses. Today, driven by powerhouse brands such as USA Network and Universal Pictures, these businesses in total represent more than 80% of NBCU’s earnings and are growing at about 15% each year. In 2008, we expect to achieve double-digit growth in digital revenues. As a result, NBCU is positioned to grow earnings 10% in 2008.

I find this interesting based on some conversations we've had in my Journalism Ethics class about media consolidation. General Electric is often left out of some the all-powerful media companies, I think because NBCU is such a small part of the company overall. Yet here we have GE admitting to the fact that NBCU is trying to grow in the cable/digital/film world, and in another portion of the lengthy letter, Immelt talks about global growth as NBCU makes attempts to break into foreign markets.

I'm not too worried about GE's influence on NBC, and from the sounds of it, I'm not too worried about NBC's health as a media business either. Though, according to Nicole Parent, an analyst who covers GE for Credit Suisse and was quoted in a New York Times article, NBC is at a low point in its value: "It’s very clear to sell an asset at the bottom doesn’t make sense.”

I think that someday I'd like to understand how 10 percent per annum growth within a multi-billion dollar company is "at the bottom." But until I do get it, I'll trust the experts on the matter, and assume that GE and NBCU are a pair that is here to stay.