Is it a software company or a publishing house? Is it a financial marketplace or a media outlet? Whatever one wishes to call it, Bloomberg LP has become a recognized name for effectively integrating and connecting the financial markets around the world.<\/p>\n
Background<\/strong><\/p>\n Michael Bloomberg founded Bloomberg LP in the early 1980s to create a computerized system that provided real-time market data to firms on Wall Street. The early Bloomberg Terminal allowed finance professionals to connect with one another, and for the first time, they were able to monitor financial trading activity, place their own quotes, interchange messages, retrieve a vast array of news, etc. It is fascinating in the way that Bloomberg Terminal both digitized and interconnected the financial world.<\/p>\n Business<\/strong><\/p>\n Although Bloomberg LP began as a humble financial software company, it quickly grew to touch every aspect of the financial professional\u2019s life. Throughout its history, it has aggressively acquired companies (e.g. BusinessWeek from McGraw-Hill in 2009) and developed its own products (e.g. Bloomberg News and the magazine Bloomberg Markets) to solidify its leadership as a premier financial services media provider. In 2014, its estimated revenues reached $9 billion and employs more than 15,000 people worldwide.(1)<\/sup><\/p>\n Currently, one Bloomberg Terminal costs about $20,000 per year, and Bloomberg Terminals account for about 85% of Bloomberg LP\u2019s total revenues (see short video below(2)<\/sup>). Although Bloomberg Terminals make up the bulk of the firm\u2019s revenues, Bloomberg LP is much more than just a financial software company. Bloomberg LP has a fascinating business model where the $20,000 annual terminal subscription fee is essentially a membership<\/em> fee into the global community of finance professionals. In short, it has become the Facebook of the finance community, both for social and professional purposes. Within the Bloomberg ecosystem, the company retains its clients and builds walls around the community by providing almost any resource that the customers could possibly need. For instance, Bloomberg News, established in 1990, provides arguably the best source of financial news with its 2,300+ editors and reporters in 72 countries. Identifying the importance of government and regulations on business, Bloomberg established a dedicated online news service in 2011 called Bloomberg Government.(3)<\/sup><\/p>\n