GE, Baker Hughes Execs Explain $32 Billion Oil, Gas Deal

The transcript discusses GE's digital strategy and its collaboration with Baker Hughes, focusing on the formation of an industrial operating system and the potential for revenue synergies. The conversation covers the strategic timing of the deal, regulatory considerations, and market dynamics, highlighting the potential for growth and pricing power in the oil and gas sector.

What is the primary focus of GE's digital industrial system, Predix, in the oil and gas industry?

• Improving drilling technology

• Enhancing customer service

• Reducing environmental impact

• Applying big data analytics

What is the initial revenue synergy projection from the GE and Baker Hughes merger?

• $800 million

• $200 million

• $400 million

• $600 million

How does the merger aim to benefit customers in terms of oil production?

• By expanding drilling locations

• By increasing oil prices

• By hiring more employees

• By reducing dollars per barrel

Why is the current timing considered right for the GE and Baker Hughes merger?

• Strategic value and cost synergies

• High oil prices

• Regulatory ease

• Investor pressure

What was a major challenge faced by the previous Halliburton and Baker Hughes merger attempt?

• Employee strikes

• Technological incompatibility

• Regulatory hurdles

• Lack of investor interest

What is a potential regulatory concern regarding the GE and Baker Hughes merger?

• Environmental regulations

• Job losses

• Increased oil prices

• Market overlap in artificial lifts

What is the future plan for Baker Hughes' assets post-merger?

• Closure of non-profitable units

• Sale to a third party

• Integration into GE's portfolio

• Complete divestiture