General Electric is looking to sell critical parts of its digital business, The Wall Street Journal reported Monday.
The Boston-based industrial behemoth has hired an investment bank to help auction off the assets, sources familiar with the matter told The Journal. Though the process is in its nascent stages, potential buyers are said to include software companies and rivals within the industrial sector looking to beef up their digital business.
The Journal did not detail how many, or exactly which, assets the company was looking to sell, though it said the company wanted to continue providing software and services to its aviation and power customers.
A spokesperson for GE declined to comment on the report.
GE Digital was a key part of former CEO Jeffrey Immelt’s strategy – the unit generated $4 billion in 2017. The industrial conglomerate has invested billions into the digital segment of its business.
GE has begun a companywide reorganization, which includes selling its health-care and railroad units, as well as its stake in oil giant Baker Hughes. The restructuring plan was devised after a year-long review and includes selling $20 billion in assets and the company refocuses on its core businesses.
On Friday, the company reported a 28% drop in profits last quarter.
Shares of General Electric have fallen more than 48% over the past year.
The stock rose slightly Monday afternoon following The Journal’s report.
|GE||GENERAL ELECTRIC CO.||13.19||+0.41||+3.21%|