What is Bloomberg? | The Untold Story of Bloomberg...

Summary

Bloomberg, a leading technology company, revolutionized the financial industry with its innovative terminals, offering real-time data and analytics. Founded by Michael Bloomberg, an electrical engineer turned entrepreneur, the company started with a focus on making brokerage work more efficient. Despite competition, Bloomberg's terminals remain a key revenue driver, with a 30% market share. The company has expanded into news, TV, and magazines, but its terminals continue to define its success in the financial sector.

Takeaways

• 💼 Bloomberg is a leading technology company known for its financial software and services, with revenues over nine billion dollars in 2017.
• 🎓 Michael Bloomberg, the company's founder, has a background in electrical engineering and an MBA, and started his career at Salomon Brothers, rising to partner by age 30.
• 💡 After being let go from Salomon Brothers, Bloomberg used his severance package to establish Innovative Market Solutions, which aimed to streamline brokerage work.
• 📈 The Bloomberg Terminal was the company's first major innovation, providing real-time data and analytics to reveal investment opportunities and streamline trading.
• 💼 Bloomberg targeted institutional investment firms with its terminal, which was too expensive for individual investors.
• 💸 A Bloomberg Terminal subscription is costly, with a significant discount for multiple users, reflecting its niche market strategy.
• 🌐 Bloomberg's services have evolved to include online and mobile access, allowing for real-time market information from anywhere.
• 🏢 Despite competition from companies like Thomson Reuters, Bloomberg maintains a slight edge with 30% market share, attributed to its first-mover advantage.
• 📰 Bloomberg has expanded beyond technology, launching a news outlet, TV channel, and acquiring the historic Bloomberg Businessweek magazine.
• 🏆 Michael Bloomberg's company has become synonymous with Wall Street, revolutionizing the financial industry and solidifying its position as a corporate giant.

Q & A

Who is Michael Bloomberg and what is his connection to Bloomberg L.P.?

Michael Bloomberg is an entrepreneur who founded Bloomberg L.P., a global financial software, data, and media company. He is also a former mayor of New York City.

What was Michael Bloomberg's educational background before starting Bloomberg L.P.?

Michael Bloomberg graduated from Johns Hopkins University with an electrical engineering degree and later obtained an MBA from Harvard Business School.

What was Michael Bloomberg's initial role at Salomon Brothers, and how did it influence the creation of Bloomberg L.P.?

At Salomon Brothers, Michael Bloomberg initially managed the firm's information technology system, which was a tedious task. This experience inspired him to create a more efficient system for brokerage work, leading to the development of the Bloomberg Terminal.

What was the primary purpose behind the creation of the Bloomberg Terminal?

The Bloomberg Terminal was designed to make the process of finding the value of securities and revealing investment opportunities more efficient by consolidating information from various investment types like stocks, bonds, and currencies.

Who were some of the key early employees that helped develop the Bloomberg Terminal?

Some of the key early employees included Tom Secunda, who started writing analytics programs, and other former Salomon Brothers employees who had a deep understanding of the needs of investment firms.

How did Bloomberg L.P. initially market the Bloomberg Terminal, and who was its first target customer?

Bloomberg L.P. initially marketed the Bloomberg Terminal by pitching it to Merrill Lynch's capital market division. The first target customer was the head of the division, Ed Moriarty.

What was the advantage Bloomberg L.P. had when developing the Bloomberg Terminal, and how did it help them create a successful product?

The advantage Bloomberg L.P. had was the team's prior experience working in investment firms, which gave them a clear understanding of the needs and requirements of their target market, leading to the creation of a product that met those needs.

What is the cost of a Bloomberg Terminal subscription, and how does it compare to competitors?

A Bloomberg Terminal subscription costs twenty-four thousand dollars per user, with a discount for two or more subscriptions at twenty thousand dollars per user. Competitors like Thomson Reuters offer their services at a lower price point.

How has Bloomberg L.P. managed to maintain a competitive edge in the financial data market despite competition?

Bloomberg L.P. has maintained a competitive edge by being the first in the market, offering a reliable and established service that financial firms are accustomed to using. Their brand is synonymous with Wall Street, and the convenience of staying with a known provider outweighs the benefits of slightly cheaper alternatives.

What are some of the ventures Bloomberg L.P. has embarked on outside of the financial data industry?

Bloomberg L.P. has ventured into media with the launch of Bloomberg News in 1991, Bloomberg Information TV in 1994, and the acquisition of the magazine Bloomberg Businessweek in 2009.

What is the current status of Michael Bloomberg regarding his political ambitions?

As of the information provided, Michael Bloomberg has confirmed that he has no intention of running for president and prefers to focus on actual work.