Founded in 1981, Bloomberg L.P. is one of the most renowned media companies based in Manhattan, New York City. The company is famous for offering financial software tools, enterprise applications, and news to various financial organizations. Bloomberg L.P. offers these services to various companies through the Bloomberg Terminal which is the core revenue-generating platform of the company. Currently, the company has established offices in 167 different locations and has nearly 20,000 employees. BloombergL.P. is a private company and there is a limited partnership.
About the Company
In 1981, Michael Bloomberg with help from Thomas Secunda, Duncan MacMillan, and Charles Zegar founded Bloomberg L.P. Apart from these four founders, Merrill Lynch invested in the company (12% ownership investment). Bloomberg has multiple services and products that include Bloomberg Terminal, Bloomberg News (wire service), Bloomberg Television (a global television network), Bloomberg Radio, magazines, and newsletters. The revenue generated by Bloomberg has crossed the $10 billion mark (in 2019). The company is currently under the leadership of Michael Bloomberg (co-founder and CEO).
History of Bloomberg L.P.
The major contribution behind establishing Company as an independent company goes to Michael Bloomberg. Back in 1981, when Salomon Brothers, a huge American international bank was acquired, Michael Bloomberg received settlement money of $10 million. Before the acquisition of Salomon Brothers, the bank used Bloomberg as the computerized financial system. The company was designed in-house and when Michael received $10 million he used that money to start Innovative Market Systems (IMS).
Michael decided to develop his own computerized system that will provide real-time market data and various financial analytics to the Wall Street firms. In 1982, Michael released the Market Master Terminal (later known as the Bloomberg Terminal) into the market and Merrill Lynch became its first customer. Merrill Lynch made a deal with the company that on behalf of buying 20 terminals and a 30% equity stake for $30 million Bloomberg won’t be able to market the terminal to any of Merrill Lynch’s competitors for the next five years.
In 1986, the name of the company was changed to Bloomberg L.P. (Limited Partnership) and in the upcoming years launched other products like Bloomberg News and Bloomberg Terminal Subscription. In 1993, Bloomberg.com was first launched to provide information on markets, currency conversion, the latest news, and events in the financial sector. In 1996, the company decided to acquire ⅓ of the stake owned by Merrill Lynch for $200 million. This acquisition valued the company at $2 billion. During the financial crisis, Merrill Lynch decided to sell the remaining stake back to the company and it valued Bloomberg at $22.5 billion approximately.
Since 1981, the company has made several acquisitions ranging from magazines to software companies. In 1992, the company purchased New York Radio Station WNEW for $13.5 million. It was later renamed Bloomberg Radio. In 2009, a weekly business magazine from McGraw-Hill called BusinessWeek. This magazine was relaunched as Bloomberg Businessweek and this acquisition was done to bring general business to the media audiences.
Major Acquisitions
The same year, the company also purchased New Energy Finance, a data company based in the UK. This acquisition was done so that company becomes an industry source with abundant information to support low-carbon energy development. Some of the other companies acquired by Bloomberg are Arlington (Bureau of National Affairs based in Virginia), Dublin-based software company PolarLake, Barclays indices business, and CityLab.
Michael Bloomberg – CEO and Co-Founder
Michael Bloomberg, mostly famous as Mike Bloomberg, is a famous American businessman and politician. He is the co-founder and also the majority owner of the company. Michael went to John Hopkins University as graduated as an electrical engineer in 1964. Later he went to Harvard Business School and acquired his MBA degree. Michael was a general partner at the Salomon Brothers upon acquisition of which led Michael to establish his company. Currently, Mike Bloomberg is among the top 20 billionaires in the Forbes billionaires list.
Annasha Dey is an NIT student, who apart from studying engineering is also a content writer. She has a great interest in photography, writing, reading novels, and travelling as well. She is a foodie who loves socializing and hanging out with her friends. She is also a trained Kathak dancer and a big fashion enthusiast. Dey also loves watching TV series, which includes F.R.I.E.N.D.S. and Big Bang Theory. To be a better writer she prefers to read more