General Electric Co. is planning to sell key parts of its digital business, The Wall Street Journal reported July 30, citing people familiar with the matter.
GE Digital was established in 2015 as a standalone entity. In 2016, GE acquired several companies and poured billions in investment to strengthen its GE Digital unit.
CEO John Flannery, who took over from Jeff Immelt, has cut jobs in the division and scaled back GE Digital's operations, which produced at least $500 million in revenue in 2017 and lost money, according to people familiar with the matter.
GE said its digital business generated $4 billion in revenue in 2017, up 12% from 2016. It isn't clear what exactly is for sale and how much a deal could generate, said the WSJ report.
GE has hired an investment bank to carry out the sale. Software companies, as well as companies looking to add greater digital focus, are interested in the unit, the publication noted, citing one of the sources.
GE is streamlining its operations. It sold its railroads unit and divestment its stake in oil services company Baker Hughes. The Boston headquartered company also plans to spin off its healthcare unit.