Billionaire media mogul Michael Bloomberg surprised markets late on Wednesday when he announced he would return to run Bloomberg LP, the financial data and news company he founded and built up before he became Mayor of New York City for 12 years.
Bloomberg LP said its chief executive Daniel Doctoroff will step down at the end of this year, when Mr Bloomberg, 72, will again head up the company he started with a severance package he received when being made redundant from his job as a trader after his employer Salomon Brothers was taken over in 1981.
Mr Doctoroff, 56, joined Bloomberg LP as president in January 2008 and became chief executive in July 2011. Before joining Bloomberg, Mr Doctoroff was New York City’s deputy mayor for economic development and rebuilding in Michael Bloomberg’s New York City administration for six years.
“I really wanted Dan to stay and continue in his leadership role,” said Mr Bloomberg. “But I understand his decision. I never intended to come back to Bloomberg LP after twelve years as Mayor. However, the more time I spent reacquainting myself with the company, the more exciting and interesting I found it…
“I have gotten very involved in the company again and that led to Dan coming to me recently to say he thought it would be best for him to turn the leadership of the company back to me. It was a gracious and thoughtful offer and one that I finally accepted after significant pushback and great reluctance.”
Bloomberg LP is privately held and Mr Bloomberg has remained its majority shareholder. Mr Bloomberg is ranked 15th on the Forbes list of billionaires with a net worth of about $33 billion.
Mr Doctoroff said: “It is and has always been Mike’s company and given his renewed interest and energy, it only makes sense for him to retake the helm.”
Bloomberg LP said that during Doctoroff’s time at the company, the company’s revenues increased from $5.4 billion in 2007 to more than $9 billion in 2014 and Bloomberg terminal subscribers — who pay up to $20,000 a year — grew from 273,000 to 321,000.
Over the same period, Bloomberg LP said its market share in the financial information sector increased from 26 per cent to 32 per cent. The company’s rivals in financial information and news include Thomson Reuters and Dow Jones.
Further, Bloomberg added more than 500 business reporters and editors in this period, while many news organizations were laying off journalists.
Before joining Michael Bloomberg at New York City Hall, Mr Doctoroff was managing partner of private equity firm Oak Hill Capital Partners and an investment banker at Lehman Brothers.Reuse content