article thumbnail

GE’s Fall Has Been Accelerated by Two Problems. Most Other Big Companies Face Them, Too.

Harvard Business Review

GE’s fall accelerated on October 25, 2015, with activist hedge fund Trian announcing a $2.5 billion equity investment in GE stock, one that made it a top 10 shareholder. GE stock was trading at $25.47 at the time of announcement, with a dividend of $0.92 per share.

TSR 9
article thumbnail

A Few Unicorns Are No Substitute for a Competitive, Innovative Economy

Harvard Business Review

For instance, Snapchat’s recent IPO filing revealed that the company grew revenues by 600% (to $404 million) in 2016. While 38 companies joined the unicorn ranks in the second half of 2015, only 19 made it into the club in the first half of 2016. In 2015 global M&A volume surpassed $5 trillion — a record.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Best Platforms Are More than Matchmakers

Harvard Business Review

In classic microeconomic terms, where firms previously focused on how best to manage transaction costs, platforms require top management to creatively cultivate transaction surplus. Similarly, Facebook’s Blueprint courseware initiative launched in 2015 champions new user capability.

IPO 8
article thumbnail

What BMW’s Corporate VC Offers That Regular Investors Can’t

Harvard Business Review

To fill the void and build such a new BMW startup unit, Gimmy partnered with an experienced innovation manager from BMW, Matthias Meyer. From 2012 to 2015, the number of global corporate venture capital deals almost doubled, and their investments quadrupled, to $29.1 Harnessing Big Potential While Minimizing Risk.

article thumbnail

?Numbers Show Apple Shareholders Have Already Gotten Plenty

Harvard Business Review

Apple’s stated intention was to carry out this $130 billion distribution of corporate cash to Apple shareholders between August 2012 and December 2015. The only time in its history when Apple raised funds on the stock market was its 1980 IPO, which provided it with $97 million. Apple is a company with phenomenal products and profits.

article thumbnail

A Simple Way to Test Your Company’s Strategic Alignment

Harvard Business Review

For example, as it grew, Facebook found that its early “move fast and break things” culture had to be funneled into focused technical teams and product groups to make its product development process faster and less erratic, and for it to have a chance of meeting the demands of its new public shareholders following its IPO.

Banking 14
article thumbnail

Many CEOs Aren’t Breakthrough Innovators (and That’s OK)

Harvard Business Review

We’ve found that CEOs of big pharmaceutical companies, for example, are more likely to have a background as company lawyers, salespeople, or finance managers, than one in medicine or pharmaceutical R&D. For example, Qualcomm’s CDMA mobile technology was a breakthrough that led to its IPO in 1991.

CEO 8