Bloomberg L.P.

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Bloomberg L.P.
Type Limited Partnership
Founded 1981
Headquarters New York City, United States
Key people Michael Bloomberg, Founder
Peter Grauer, Chairman
Dan Doctoroff, President
Thomas Secunda, CTO
Matthew Winkler, Editor in Chief, News
Industry Financial Services
Revenue US$4.7 billion (2006)
Employees 10,000 (February 2008, Bloomberg.com)
Website http://www.bloomberg.com
Bloomberg broadcasting studio in London

Bloomberg L.P. is a financial software services, news and data company. It holds 33% of international market share and is approximately the same size as Thomson Reuters, formed from the merger of its competitors Thomson Financial and Reuters into Thomson Reuters on 17 April 2008.[1]. Bloomberg L.P. was founded by Michael Bloomberg (current Mayor of New York City) with the help of Thomas Secunda and other partners (Bloomberg's former coworkers from Salomon Brothers) in 1981 with the help a 20% ownership investment by Merrill Lynch. The company provides financial software tools such as analytics and equity trading platform, data services and news to financial companies and organizations around the world through the Bloomberg Terminal, its core money-generating product. Bloomberg L.P. has grown to include a global news service, including television, radio, the Internet and publications.

Its current headquarters are located at the Bloomberg Tower, 731 Lexington Avenue in Midtown Manhattan, New York City.[2]

It was incorporated as a Delaware Limited Partnership (LP) in 1981 and has been in business since 1983. Michael Bloomberg owns 92% of the group. Bloomberg's core business is leasing terminals to subscribers. It also runs Bloomberg Television, a financial TV station, and a business radio station WBBR in New York City. Forbes Magazine estimated, in 2000, Bloomberg's cash flow margins on its $2.3 billion in revenues exceed 35%. Bloomberg reports more than 100,000 users in North America, and another 130,000 in the rest of the world. Its competitors include Thomson Reuters, Dow Jones Newswires, FACTSET and smaller companies such as New York Financial Press. In July 2008, Merrill Lynch agreed to sell its 20% stake in the firm back to Bloomberg, for a reported $4.43 billion, valuing the firm at approximately $22.5 billion[3] [4].

Contents

[edit] History, services & products

In 1981, Michael Bloomberg was fired from Salomon Brothers, where he was a general partner and given a $10 million severance package.[5] Using this money, Bloomberg went on to set up a company named Innovative Market Systems. In 1982, Merrill Lynch became the new company's first customer, installing 20 Market Master terminals and investing $30 million in the company.[6][7] [8] In 1986, the company was renamed Bloomberg L.P. and by 1987, 5000 terminals had been installed.[citation needed] Within a few years, ancillary products including Bloomberg Tradebook (a trading platform), the Bloomberg Messaging Service, and the Bloomberg newswire were launched.

Bloomberg prospered during the boom of the 1980s and 1990s. It expanded internationally, opening offices in Europe, Asia, Latin America and Australia. In addition to its financial services offerings, Bloomberg launched its news services division in 1990. Bloomberg News (originally known as Bloomberg Business News) has some 2,000 staff in 125 bureaus around the world and is available on the web at www.bloomberg.com. It now provides information to approximately 350 newspapers and magazines worldwide, including The Economist, The New York Times and USA Today.[citation needed]

In order to run for the position of Mayor of New York which he won against Democrat Mark Green in 2001, Mike Bloomberg gave up his position of CEO at Bloomberg and appointed Lex Fenwick as CEO in his stead.[citation needed]

[edit] Corporate governance

As of March 2001, members of the board of directors of Bloomberg include: Peter Grauer, Arthur Levitt, Jane Bryant Quinn, Frank Savage, and Thomas Secunda.[9]

[edit] Criticism

The Bloomberg Professional service is priced around $1800 per terminal per month[10] (excluding exchange fees for live data) for the first terminal sold. Bloomberg has also pushed the introduction of Bloomberg Anywhere, a biometrically authenticated web-access system for Bloomberg Professional. This has forced firms to provide full Bloomberg subscriptions for users who would otherwise have been able to share terminals. The Bloomberg Messaging system has become the standard means of written communication in certain markets[citation needed] and the loss of the messaging service and the associated client contact is a significant switching barrier for anybody wishing to use a competing product, thus forcing many market participants to pay for a full Bloomberg subscription just to use the messaging service. The product is noticeably Americocentric. In particular, it is impossible to customise the date format .

[edit] See also

[edit] Notes

[edit] External links

[edit] Television

Bloomberg Television

[edit] Radio

[edit] On-demand podcasts

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