Boston native and son of an accountant and secretary, Michael Bloomberg is an American businessman who is ranked as the ninth richest person in the US and the wealthiest individual in New York. Having attained an enormous net worth of $53 billion, the prominent entrepreneur became the fourteenth richest person across the globe. Beyond being recognised for his business ventures and political activities, Bloomberg is widely known for his large heart and magnanimous spirit. Having achieved such a tremendous financial value coupled with his philanthropic efforts that have summed up to over $8 billion, many have often wondered how Michael Bloomberg achieved his staggering net worth. For this reason, we have compiled interesting details on how the media mogul achieved his net worth.
Michael Bloomberg’s Business Ventures
Michael Bloomberg graduated from John Hopkins University in 1964 with a Bachelor of Science degree in Electrical Engineering. He then enrolled at Harvard Business School and graduated in 1966 with a Masters of Business Administration. Upon earning his MBA, he got recruited by an investment bank called the Salomon Brothers where he reportedly earned a starting salary of $9,000 per annum. Later in 1972, he rose through ranks and was named partner. Three years later, a commodity trading firm, Phibro Corporation bought the company which led to Bloomberg being laid off from the financial institution with a $10 million bond payout.
He then used part of the money to start up his own firm, Innovative Market Solutions (IMS), a financial information technology company. The company was renamed Bloomberg L. P in 1986 and had its first patronage from Merrill Lynch, an American investing and wealth management division of Bank of America. They made a 30% ownership investment in the company as they invested $30 million through the installation of 22 of the company’s Market Master Terminals.
By 1990, Bloomberg L. P which was co-founded by Thomas Secunda, Charles Zegar, and Duncan MacMillan had installed about 8,000 terminals. However, in 1996, Micheal Bloomberg took a heavy leap which ultimately helped him in achieving his net worth – that leap was buying Merrill Lynch’s 30% stake in the company for $200 million and they reportedly sold their remaining 20% stake to the company for $4.43 billion in 2008. As a result, the accomplished entrepreneur now has an 88% stake in the company which has been bringing in no less than $10 billion in revenue annually since 2018. The company has nearly 20,000 employees in 176 locations in 120 countries.
Michael Bloomberg’s wealth has grown massively over the years as its core revenue-generating product, Bloomberg Terminal which is a computer software system has garnered over 325,000 terminal subscribers across the globe. Bloomberg L. P has also launched other ancillary products such as Bloomberg News – a wire service, Bloomberg Television – a global television network, Bloomberg Radio Stations along with its subscription-only newsletters and two magazines called, Bloomberg Businessweek and Bloomberg Markets.
Through the revenues from Bloomberg L. P and it’s ancillary products, the media magnate has skyrocketed his net worth to a staggering sum of $53 billion which makes him one of the wealthiest individuals across the globe.
Although Michael Bloomberg achieved the majority of his net worth through his business ventures, he also pocketed a trifling sum of money during his long stint as the Mayor of New York. In 2001, he gave up his position as the Chief Executive Officer of Bloomberg L. P and appointed Lex Fenwick as CEO in his stead, in order to run for the position of Mayor of New York.
Following his victory in the 2001 mayoral election, Bloomberg spent three tenures on the seat. During his administration, he took the same data-driven approach that had benefited him in the private sector and applied it to the City government. As a result, he was named one of the most successful New York Mayors in the history of the City.
It is noteworthy that the budget overseen by New York City Mayor’s Office of Management and Budget is the largest municipal budget in the United States at $92 billion. Even though Michael Bloomberg was paid an annual salary of $258,750, he only took just $1 a year and gave up $2.7 million of his mayoral salary over the 12 years he served.