Letterman Sends Fruit to GE Board


When GE acquired NBC, there was much doubt that they could create value with the highly unrelated acquisition. This very funny video of Letterman delivering a fruit basket to GE headquarters illustrates the cultural differences (see especially the GE handshake ;-). However, business segment data reveal that NBC’s operating margin was doubled and revenue was up 60% after GE’s ownership. Did they actually make money? Maybe. It took them 10 years to accomplish this (and everything tanked the 1st 5 years) — a time factor that may reduce the value created by as much as $3 billion depending on their initial assumptions. This can be used to demonstrate hard numbers behind the acquisition integration process (spreadsheet available on request).

Contributed by Russ Coff

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