Bloomberg to increase news operation by 10%

Posted by Mica Swyers on June 22, 2007 at 3:22 PM

As its news operation becomes increasingly important in its role as an information company, Bloomberg plans to add at least 240 reporters in 2007, a 10% boost in staff. Many see the increase as Bloomberg’s strategy to keep ahead of Reuters and Thomson, as well as the potential threat of News Corp as Rupert Murdoch bids for Dow Jones Co.

Matthew Winkler, head of Bloomberg News, has already hired 180 new reporters in 2007, with plans to add at least 60 to the employee list. “News is an increasingly important part of the Bloomberg business model and an increasingly important driver of [Bloomberg] terminal sales,” he explained. With margins of over 30%, Bloomberg terminals across the globe brought in $4.7 billion in revenues for 2006.

Because media moguls are eyeing financial media as a source of additional revenue, Bloomberg’s increases are an attempt to stay ahead of its competition, most notably an $18 billion merger between Reuters and Thompson. In addition, if Murdoch acquires Dow Jones Co. and its crown jewel, The Wall Street Journal, he had plans to increase its staff levels in Washington D.C., Asia, and Europe.

Source: Financial Times

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