Terminal plan
Mike Bloomberg said on Tuesday that he has “a lot of experience” that would be useful if he were president of the United States. Appearing in Iowa, the U.S. state that kicks off the quadrennial primary season, he added that he’d try to sell his financial-data empire if he wins the 2020 presidential race. Lucky for him, money is plentiful for a buyout that could be valued at $40 billion. And there’s a recent deal that could provide a blueprint: the sale of Refinitiv to Blackstone by Breakingviews parent Thomson Reuters....MORE
The private-equity shop led by Steve Schwarzman acquired a 55 percent stake in Bloomberg’s arch-rival two months ago in a deal valuing the whole of Thomson Reuters’ financial-data business – subsequently renamed Refinitiv – at $20 billion. It was the biggest buyout since the financial crisis, and the $14.5 billion of debt that financed the deal was oversubscribed by potential investors.
Bloomberg’s revenue is roughly two-thirds larger at around $10 billion, CNBC reported. At a 40 percent EBITDA margin, which is what the business generates according to sources cited by Recode, and at a valuation of 10 times that profit figure – just under what Refinitiv secured – it would be worth $40 billion. Continuing to follow the Refinitiv model, where three-quarters of the deal was funded by leverage and the original owner retained a 45 percent stake in the business, a buyer of a 55 percent stake would need to write an equity check of around $5.5 billion and help find roughly $30 billion in debt.
Those are daunting figures, especially with debt markets wobbling in recent weeks. Yet finance remains abundant. Private-equity shops have roughly $1 trillion in dry powder according to data provider Preqin, and they can bring in giant pension and sovereign wealth funds as partners, as Blackstone did with the Canada Pension Plan Investment Board and Singapore’s GIC on Refinitiv....
Or maybe he separates the news biz and the terminal business and sets up something like the Scott Trust's ownership of The Guardian.
You saw it here first folks.
Previously:
"Twilight Of The Terminal: The Disruption Of Bloomberg L.P."
"Can Anyone Bury Bloomberg?"
If Michael Bloomberg Sells: Who has the money — and similar strategy — to buy Bloomberg
"Bloomberg would consider selling his company if he runs".
