If we’re talking about Bloomberg, a finance media is all that we can imagine of. Bloomberg is known to have their official TV channel as well as online and offline magazines. Everything about Bloomberg is always money, money, and money: From quarterly financial reports to stock prices and market analysis of different companies.
According to TalkingBizNews.com, Bloomberg’s annual revenue hit the amount of $10 billion in 2018. Bloomberg’s latest quarterly financial reports also reported several surplus or increases in revenue and earning posts.
Given Bloomberg’s close-knit relationships to things related to money, we may have been wondering, who is behind Bloomberg?
Bloomberg (or Bloomberg LP, as the officially registered company name) was first created and initiated by a former New York City mayor, Michael Bloomberg. Graduated from the Harvard Business School and John Hopkins University, two of the most expensive universities in the U.S., Bloomberg has the genetic of a billionaire since his youths.
After graduating from the university, Bloomberg continued to pursue his investment-related experiences by working for Salomon Brothers, Inc. At the time Bloomberg worked there, Salomon Brothers, Inc.’s CEO and Chairman were the “Kings of Wall Street” due to their high profitability they had been making among all Wall Street companies.
Prestigious companies almost always come with difficult selection processes and high salaries as well as exclusive facilities compared to the more mediocre companies. This includes Salomon Brothers, Inc. at the time it became one of the five largest investment banking enterprises in the U.S.
So, Bloomberg has already gained his wealth since his youths – that’s when we answered how could someone named Bloomberg make his money. Furthermore, he had been building and managing his wealths by working in one of the big five financial institutions at the start of his careers.
1981 was the Bloomberg’s turning point that made his net worths even bigger. It was when Bloomberg became Salomon Brothers, Inc.’s partner. The Kings of Wall Street gave him an initial partnership settlement of $10 million. With that $10 million initial partnership settlement, Bloomberg started Innovative Market Systems (IMS). IMS, which now we know as Bloomberg LP or Bloomberg, was a company focusing in providing financial analytics, such as real-time market data and financial computations, to other Wall Street companies.
Bloomberg’s revenues didn’t stop in initiating IMS. After changing the official name of IMS to Bloomberg LP in 1986, Bloomberg quickly added another product: Bloomberg Tradebook. Bloomberg Tradebook is like the Bloomberg’s official trading platform.
At first, the Tradebook only provided investors means to trade U.S. equities. The Asian and European equity markets followed around 3-4 years afterwards. Next year in 2002 and 2007 respectively, the Bloomberg Tradebook has added futures, U.S. listed options, and foreign currencies to the available possible portfolios investors can make in it.
Eventually, Bloomberg Tradebook also opens for consulting activities. The first one is the execution advisory services that provide analytics and market knowledge to improve trading efficiencies. The second one is the fact that Bloomberg Tradebook partners with independent third-party research providers to provide financial consultations to their clients.
Apart from the Bloomberg Tradebook trading platform and consulting services, Bloomberg also earns his money through Bloomberg’s 88-year old magazine: Businessweek. Bloomberg also provides online information subscription through the official Bloomberg website.
According to Bloomberg’s official website, the online subscription costs $1.99 per month for the monthly subscription plan or $290 per year for the yearly subscription plan.
The monthly subscription plan for unlimited digital accesses to Bloomberg App, the printed Businessweek editions, Bloomberg live events with real people, and many other more, cost the same as the digital monthly subscription, while the yearly subscription plan for the full access costs $330 per year. The printed Businessweek alone costs $99 per 50 issues for one year and is delivered weekly.
Bloomberg doesn’t only reside and get their big name in the U.S. Up until now, there has been more than 20,000 Bloomberg employees all over Asia, Europe, and other continents where Bloomberg operates. Even Bloomberg Tradebook and Businessweek are now accessible and has been adjusted into the needs in different continents.
Now, according to the official information of Bloomberg, Bloomberg owns 88 percent of his company’s stock. The other 12 percent are owned by Merrill Lynch, who became the first customer who purchased 20 terminals and 30% equity stakes of Bloomberg when it was still IMS.
As a result of those wealth-building activities, from creating distinct trading platform to initiating online and offline magazines on the financial and market analytics, Bloomberg’s net worth become higher. In the 2019 alone, Bloomberg has collected the net worth of $55.5 billion, making him #9 richest person according to the Forbes magazine.
Even though Bloomberg’s net worth has slightly declined per January 1, 2021, from $55.5 billion to $54.9 billion, we can’t stop in wondering how did Bloomberg make his money, especially in times of the COVID-19 pandemic where almost every business all over the world are shut down.
Other than becoming famous with the Bloomberg group of businesses, Bloomberg also owns properties in the Washington D.C. and Burlington, Vermont. In the New York City alone, where Bloomberg pays his taxes, he has eight other homes. The properties Bloomberg has and owns don’t stop in the U.S. In fact, he also owns properties in London, Florida, Colorado, and Bermuda. The Lake Champlain also becomes his home for the summer holiday.
Bloomberg is also known as a philanthropist who is interested in the environment and public health issues as noted in Bloomberg Philanthropies official website. Lately, he initiates more than $5 million responses to the COVID-19 pandemic outbreak.
With such amounts of a net worth, Bloomberg becomes a self-made billionaire who is around 7-17 times richer than Donald Trump. He also becomes one of the richest electoral candidates to run on campaigns. Even with the salary of $1 per year he accepted as the New York City major, he is still a billionaire whose face is familiar in the Forbes magazine as well as whom most people look after as a financial role model.