Bloomberg is planning a sustained investment in its news operations and tech, arguing that it can gain market share despite sweeping changes in financial markets. The current financial turmoil
poses the biggest threat to sales of its data terminals in Bloomberg's 27-year history. Peter Grauer, chairman, says the company had seen a fall of just over 2.5% in Bloomberg terminal sales since
November, and more cancellations are expected. The terminals account for about 85% of Bloomberg's revenues.
However, Grauer says the company will add 950 new staff this year,
including about 100 in its news operations, and will open six news offices to add to its 145 existing bureaus. The company is also "open-minded" about acquisition opportunities.
Grauer's
comments underscore Bloomberg's reputation as a deep-pocketed private company willing to make counter-cyclical investments. But many analysts are wary, saying that it is exposed to more vulnerable
sectors of the financial services industry than its rivals.
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