A $17 billion stake purchase in Thomson Reuters‘s financial and risk unit puts the financial equity firm in a collision course against Bloomberg.
The market of market data provision to bankers, regulators and investors see both Thomson Reuters and Bloomberg as the main providers.
Thomson Reuters will hold a 45% stake in the aforementioned units. Its other businesses – namely, a legal and tax accounting service and its major, world-renowned international news operation.
Joe Baratta, global head of private equity for Blackstone, commented on the acquisition:
“We are delighted to partner with Thomson Reuters. This is a landmark transaction for Blackstone and our investment partners,” he said.
Bloomberg has held the undisputed top position in the industry of financial data for a long time. It leases its “terminals“ to clients for prices that go up to over $20,000 per year.
These terminals provide the users with thousands of facts and stats on almost anything that can be traded — stocks, commodities, bonds, and such. It also has a messaging platform in which traders can share the information with each other.
Bloomberg‘s product has become a staple of the stock market – and many even consider it a status symbol. Worldwide, thera are over 325,000 terminals installed. However, there are some that resent the supremely dominant position that the company has cemented over the years.
This is not the first competitor that the company founded by former New York City mayor Michael Bloomberg has faced, though – as other products, including some backed by banks, have popped up over the past few years.