RCA Corporation

RCA Corporation, founded as the Radio Corporation of America, was a major American electronics company in existence from 1919 to 1987. Initially, RCA was a patent trust owned by a partnership of General Electric (GE), Westinghouse, AT&T Corporation and United Fruit Company. It became an independent company in 1932 after the partners agreed to divest their ownerships in settling an antitrust lawsuit by the United States. An innovative and progressive company, RCA was the dominant electronics and communications firm in the United States for over five decades. In the early 1920s, RCA was at the forefront of the mushrooming radio industry, both as a major manufacturer of radio receivers and as the exclusive manufacturer of the first superheterodyne receiver. In 1926, the company founded the National Broadcasting Company (NBC), the first nationwide radio network. During the 1920s and 1930s RCA also pioneered the introduction and development of broadcast television—both black and white and especially color television. Throughout most of its existence, RCA was closely identified with the leadership of David Sarnoff. He became general manager at the company's founding, served as president from 1930 to 1965, and remained active as chairman of the board until the end of 1969. Until the 1970s, RCA maintained a seemingly impregnable stature as corporate America's leading name in technology, innovation, and home entertainment. However, the company's performance began to weaken as it expanded beyond its original focus—developing and marketing consumer electronics and communications in the US—towards the larger goal of operating as a diversified multinational conglomerate. The company also faced increasing domestic competition from international electronics firms such as Sony, Philips, Matsushita and Mitsubishi. RCA suffered enormous financial losses attempting to enter the mainframe computer industry, and in other failed projects including the CED videodisc system. By the mid 1980s, RCA was rebounding but the company was never able to regain its former eminence. In 1986, RCA was reacquired by General Electric during the Jack Welch era at GE. Welch sold or liquidated most of RCA's assets, retaining only NBC and some government services units. Today, RCA exists as a brand name only; the various RCA trademarks are currently owned by Sony Music Entertainment and Vantiva, which in turn license the RCA brand name and trademarks for various products to several other companies, including Voxx International, Curtis International, AVC Multimedia, TCL Corporation, and Express LUCK International.

Establishment by General Electric

RCA originated as a reorganization of the Marconi Wireless Telegraph Company of America, commonly called "American Marconi". In 1897, the Wireless Telegraph and Signal Company, Limited, was founded in London to promote the radio—then known as "wireless telegraphy"—inventions of Guglielmo Marconi. As part of worldwide expansion, American Marconi was organized as a subsidiary in 1899, holding the rights to Marconi patents in the United States and Cuba. In 1912, American Marconi took control of the assets of the bankrupt United Wireless Telegraph Company, and from that point forward, was the dominant radio communications company in the United States. When the United States entered World War I in April 1917, the federal government took control of most civilian radio stations to use them for the war effort. Although the government planned to restore civilian ownership of the radio stations once the war ended, many United States Navy officials hoped to retain a monopoly on radio communication even after the war. Contrary to instructions it had received, the Navy began purchasing large numbers of radio stations. When the war ended, Congress rejected the Navy's efforts to have peacetime control of the radio industry and instructed that the Navy return the stations to the original owners. Due to national security considerations, the Navy was particularly concerned about returning high-powered international stations to American Marconi, since the majority of its stock was in foreign hands, and the British already largely controlled the international undersea telegraph cables. This concern was increased by the announcement in late 1918 of the formation of the Pan-American Wireless Telegraph and Telephone Company, a joint venture between American Marconi and the Federal Telegraph Company, with plans to set up service between the United States and South America.

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