On Friday GE said that it is selling most of its GE Capital banking business.
On Thursday GE announced that it has sold its real estate assets for whopping $26.5 billion, the assets include commercial loans, apartment complexes and factories.
Private Equity fund Blackstone and Wells Fargobank bought most of it for about $23 billion.
The company said that it is going to take $16 billion after-tax charge against earnings the first quarter as a result.
Wall Street praised the company as the move indicates that the company is getting serious with manufacturing and shifting from financials.
After the announcement the stocks jumped 8.9 percent to $27.81a share.
Barbara Noverini, analyst with research firm Morningstar, “We needed to see that management was serious about exiting this part of the business — leaving behind the old GE and moving forward.”
Shareholders are very happy with the move as share rose and it will return money to them.
A new buyback plan of up to $50 billion is authorized by the company, and it also said that it will return $90 billion by 2018 to investors as dividends and buybacks.
GE chairman and CEO Jeff Immelt announced the plan to cut down GE Capital on Friday.
GE’s former CEO Jack Welch said it’s “a big change for GE,” but he added it is “right for the company,” in a letter.
Immelt in a letter to shareholders said, “Creating a simpler GE will position us to deliver superior outcomes around our core capabilities.”
The company valued $259 billion was founded by Thomas Elva Edison in 1876.
In 2011 it sold NBC Universal, news and entertainment company. In 2014 the company spun off its private label credit card company, Synchrony Financial in an initial public offering that raised $2.9 billion.