This one’s gonna leave a mark, Bloomberg.
Despite the successful completion of a third-party probe into its snooping scandal, the media giant is likely to face headwinds in the sale of its highly profitable terminals.
Some banks conducted their own review of their agreements with Bloomberg LP after Spygate broke and now believe they will likely cut the number of terminals they rent, sources at the banks said.
Spygate provided enough incentive for banks to weigh life without Bloomberg, the sources said.
Many of those firms, which had mulled creating their own Bloomberg-like features, including the popular chat, or signing agreements with rivals, may still do so in order to trim costs.
Each terminal, leased for two years, costs $20,000 a year. “Those costs can add up at a big firm,” said one bank official.
At the same time, Bloomberg has been trying to expand its business in order to grow revenues. Those moves have riled some of its biggest bank clients because it brought the media giant into areas such as swaps execution, which compete directly with banks.
Yesterday, banks including Morgan Stanley, JPMorgan Chase and Goldman Sachs approved of Bloomberg’s efforts to review its practices.
“We value our longstanding partnership with Bloomberg and are pleased that they have taken the appropriate steps to address the concerns that have been raised,” a Morgan Stanley spokesman said.
