What's up with Westinghouse?

17 Jun 2002

Westinghouse Electric Corp. may eventually shed all of its industrial assets and transform itself from a far-flung conglomerate into solely a media company, according to Reuters. Taking another step toward sharpening its focus on the broadcasting business, Westinghouse said Wednesday it has agreed to sell its defense electronics unit to Northrop Grumman Corp. in a deal worth $3.6 billion. Analysts also suggested the company could relocate its corporate headquarters to New York from Pittsburgh.

"Clearly, the company's main focal point is media,'' said Richard Henderson at the Pershing Research Division of Donaldson, Lufkin & Jenrette.

Westinghouse is retaining several industrial businesses at this point, including power generation and energy systems. The company, which took on heavy debt to finance its $5.4 billion purchase of CBS last year, said it will receive $3 billion in cash for the unit. Northrop agreed to assume about $600 million in pension and other post-retirement liabilities associated with the current employees of the business.