Tuesday, August 9, 2022

How Michael Bloomberg became a multi-billionaire


Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com

The fortune of Democratic Party’s presidential candidate Michael Bloomberg is estimated by Forbes magazine to be more than $54 billion, far ahead of incumbent President Donald Trump, whom he would likely to face in the event of priming elections. Trump’s assets are unclear because he gives no detailed insight into his finances. Forbes estimates his wealth at $3.1 billion.

Bloomberg joins the race because he sees Trump as an “existential threat to the country and its values”. He also made it clear in the past that he does not think much of Trump as an entrepreneur. He once said, “I am a New Yorker and I recognize a cheater when I see him”. Bloomberg is a serious candidate for his wealth alone. Elections in the United States of America are swallowing up huge sums, especially as candidates are forced to put a lot of money into advertising.

Michael Bloomberg said that he will pay for his own election campaign and will not accept  donations. He spared more than $30 million to run TV commercials this week alone, far more than any other Democratic candidate combined. Correspondingly harsh criticism hit him from the left wing of the applicant field, in particular from Bernie Sanders and Elizabeth Warren. Sanders said, “I’m disgusted by the thought that Michael Bloomberg or any other billionaire says he can bypass the political process and spend tens of millions of dollars to buy our elections”.

“Elections in the United States are swallowing up huge sums, candidates are forced to put a lot of money into advertising”

77-year-old Bloomberg hostility, is not surprising, especially since his entry into the election campaign is equivalent to a vote of no confidence for the previous candidates. He had already retired from the race in March of this year, largely because he considered former Vice President Joe Biden a strong candidate from the moderate wing of the party, where he sets himself up.

So far, Biden did not look too good in the election campaign and had to watch more progressive candidates like Warren. For Bloomberg, however, Warren or Sanders are too extreme in their political positions to beat Trump. But apparently, he also realized that proposals from these candidates are currently well-received. A campaign video published by him said he wanted to see rich people pay more taxes. That’s what Warren and Sanders are asking for.

Bloomberg’s wealth is based on the Bloomberg LP, a company in which he holds almost ninety percent at present. He founded the company in 1981 with money from his career at the investment bank Salomon Brothers.

Bloomberg is known for its terminals, which provide very specific financial data and regarded as an indispensable instrument on Wall Street.

“Warren or Sanders are extreme in their political positions to beat Trump”

Financial data subscriptions are expensive and cost more than $20,000 per year. According to the Burton-Taylor advisory group, the company claims to have around 325,000 worldwide subscribers. The terminals are at the heart of Bloomberg, accounting for almost three-quarters of sales.

“Bloomberg’s wealth is based on the Bloomberg LP, a company in which he holds almost ninety percent at present”

In addition, the company has many other business fields. The best known is the media sector, which includes the news agency “Bloomberg”, television channels and the magazine “Bloomberg Businessweek”. There are also specialized information and analysis services, circles around law to politics.

As a non-listed company, Bloomberg LP does not publish business figures. But more information seeps, which allow conclusions to be drawn on the assets of the majority owner.

According to reports, rely on internal sources, last year the company’s turnover was around $10 billion. In 2008, the Bloomberg LP repurchased its own shares from Bank Merrill Lynch valued more than $22 billion.

“Last year Bloomberg’s turnover was around $10 billion”

The company is also struggling with challenges, such as the competition of cheaper providers or the general free availability of many financial data. Still, the subscriber numbers seem to have remained stable.

For the presidential candidacy, Michael Bloomberg wants to resign from his company, his duties will be taken over by a five-member executive committee. The WSJ report revealed that instead selling the company, Bloomberg will convert it into a trust. The media division Bloomberg LP has already responded to any conflicts of interest: It will do no investigative research on its majority owner or on the other democratic candidates.

Read also: US writer warns of the consequences of isolating Trump

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