Episode 21: Inside the M&A Press with Bloomberg's Alex Sherman

Financial Health

David Rosenthal highlights Bloomberg's financial robustness compared to its competitors. He explains that Bloomberg's terminal business, generating $9 billion annually, subsidizes its media operations, unlike ad-supported models that struggle financially. This financial stability allows Bloomberg to focus on providing value to both common and terminal users, especially through M&A stories that significantly impact markets 1. Rosenthal also shares a brief history of Bloomberg, emphasizing its origins as a technology company founded by Michael Bloomberg in 1981 2.

   

Terminal Business

Bloomberg's terminal business is central to its financial success. David Rosenthal describes the terminals as essential tools for Wall Street traders, offering a comprehensive platform for communication, data analysis, and trading. These terminals, costing $25,000 annually per user, provide subscribers with a significant advantage by delivering news 15 minutes before the general public 1. This early access to information justifies the high subscription cost and underscores the terminal's value 2.

   

Media Expansion

Bloomberg's expansion into media complements its core terminal business. David Rosenthal notes that Bloomberg has ventured into radio, TV, and podcasts, broadening its reach and influence. Despite these expansions, the terminal business remains the primary revenue source, with media serving as an additional value layer 2. Rosenthal also mentions Bloomberg's plans to produce oral histories of significant deals, further diversifying its content offerings 3.