Bloomberg to retake helm at data group

Michael Bloomberg is taking the reins of his eponymous market data company from Dan Doctoroff, chief executive of Bloomberg for the past six years, in a reversal of a pledge he made when he stepped down as mayor of New York City last year.

The announcement by Mr Bloomberg came as a surprise, although he had been spending increasing amounts of time at the company’s Manhattan headquarters, directing the strategy of a $9bn-a-year organisation that has grown from its core business of providing financial information to expand its ambitions in areas from news to legal information.

Comments from Mr Bloomberg and Mr Doctoroff suggested that the two men had discovered there was not enough room for both of them at the top of the company. “When Mike decided he wanted to spend some time at the company, and then spent more time, obviously things changed,” Mr Doctoroff told the New York Times. “It isn’t the job I had for the past six years. It’s his – he wants to be involved.”

Mr Bloomberg said in a statement: “This is a sad day for me and my company. I really wanted Dan to stay and continue in his leadership role. But I understand his decision.”

He added that he had not intended to return after 12 years as mayor, but as he became “very involved” in the company again, “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”.

He said he had decided to take over “after significant pushback and great reluctance”.

Mr Bloomberg will not take the CEO title, but will lead the company “with support from the existing leadership team” including Peter Grauer, Tom Secunda and Matt Winkler, the company said – leaving open the possibility that he may find a successor to Mr Doctoroff in due course.

Gapper on Bloomberg

Michael Bloomberg had no intention of taking a benevolent overview of what his employees were doing, writes John Gapper. The placement of his desk on the edge of an open plan office showed that the returning boss would be fully engaged and ready to voice his opinion

Read the full blog

Mr Doctoroff, 56, had worked for Mr Bloomberg in City Hall for six years as deputy mayor for economic development and rebuilding before joining the company. “Despite the fact that he knew next to nothing about Bloomberg LP and its business model, I asked him to lead my company with the same kind of disciplined and creative leadership he demonstrated in City Hall,” said Mr Bloomberg.

“He immediately immersed himself in the business and expertly guided Bloomberg LP through the worst financial crisis of our generation,” Mr Bloomberg added, crediting him with “thoughtfully” diversifying the business while retaining its culture.

Mr Doctoroff said: “Leaving is not an easy decision, but it is the right one for the company, for Mike and for me at this stage of my life. 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. I take pride in our achievements over the past seven years and I know the company will only grow stronger.”

“Leaving is not an easy decision, but it is the right one for the company, for Mike and for me at this stage of my life”

– Dan Doctoroff, chief executive

The company said revenues had grown from $5.4bn in 2007 to more than $9bn under Mr Doctoroff’s leadership, which saw its share of the financial information industry expand from 26 per cent to 32 per cent.

Terminal subscribers had grown from 273,000 to 321,000, it said, while it had tripled “enterprise” revenues to $1.08bn, diversified into legal, government and energy markets and “enhanc[ed] its global influence” through the expansion of its digital and TV news and the acquisition of BusinessWeek.

Two reports published last year as part of a wide-ranging internal review of Bloomberg’s data and journalism practices brought to light several controversial incidents within the media group, including reporters lurking in anonymous trader chat rooms.

This is a sad day for me and my company. I really wanted Dan to stay and continue in his leadership role

Bloomberg commissioned the reports following complaints from two of its biggest Wall Street clients – Goldman Sachs and JPMorgan Chase – that the group’s reporters had used private terminal data to spy on the banks’ employees.

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CV: Michael Bloomberg

February 14, 1942: Born in Boston.

1964: Graduates from Johns Hopkins University with a BSc in electrical engineering.

1966: Earns an MBA from Harvard Business School.

1973: Becomes general partner at investment bank Salomon Brothers.

1981: Receives $10m when he is laid off after Salomon Brothers is bought by Phibro. He uses the money to establish Innovative Market Systems, a business information company aimed at the financial sector.

1982: Merrill Lynch becomes IMS’s first customer, investing $30m in the company.

1987: The company is renamed Bloomberg.

1997: Publishes his autobiography Bloomberg by Bloomberg.

2001: Steps down as chief executive so he can run for mayor of New York, standing as a Republican despite being a Democrat for most of his life and a liberal on many social issues. He wins by two percentage points despite outspending his rival by a ratio of five to one.

2005: Re-elected mayor, winning by 20 percentage points.

2008: Proposes that New York state law should be changed so he can run for a third consecutive term. Law is changed. Dan Doctoroff, formerly deputy mayor, becomes chief executive of the company

2009: Re-elected to a third term.

2013: Leaves City Hall. Pledges not to take charge again of Bloomberg, which now employs 15,000 people around the world. Plans to spend more time on his myriad philanthropic activities.

2014: Retakes control of the company after Mr Doctoroff resigns. Mr Doctoroff says his position became untenable after Mr Bloomberg started spending more time in the office.