The online service, called BloombergBlack, had begun trials within the last few months, according to a number of online press reports, and is said to have been in the works for more than three years. It was reportedly being offered to customers during the trial period for $100 (£66, €75.60) a month, much less than the $20,000 annual fee charged for the Bloomberg terminals.
In a statement, a Bloomberg spokesperson said the company had “weighed the future prospects of the business against the ongoing resource investment, and concluded that it wasn’t in our best interest to continue moving forward”.
“We remain optimistic about the idea and open to the possibility of pursuing a similar business in the future.”
It was not immediately clear whether BloombergBlack would have targeted Americans only, or investors of other nationalities. But its flagship information terminals are in use globally, and according to its website, it has 146 news bureaus in 72 countries, which generate more than 5,000 stories a day, in addition to masses of technical data used by asset managers and traders.
Expanding into new areas
In May, a story on the The New York Times website noted that some observers, such as consultants and market analysts, saw some of Bloomberg’s newest business ventures as beginning to compete head-on with the businesses of some of the company’s largest terminal business clients, such as the major banks.
It noted that this concern was heightened by the public disclosure earlier this year that some Bloomberg customer data had been accessible by reporters and others inside the company.
The Times story quoted Larry Tabb, a consultant, as saying: "If you add all this stuff up together, they [Bloomberg] do look increasingly like a brokerage business."
