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Bloomberg vs. Reuters: An Overview
The digital revolution drove the development of new ways to access information, leading to cutting-edge information platforms by Bloomberg and Reuters.
Both Bloomberg L.P. and Reuters are seen by many as the fastest moving and most credible digital information sources in the financial industry. Each has provided data and financial news to hundreds of thousands of investors and traders globally.
More Than News
These two companies are best known for rivaling traditional outlets such as The Wall Street Journal, The New York Times, and The Financial Times for financial news. However, their core services have offered users much more than news.
Clients of both look to their offerings for the most up-to-the-minute information available on trading metrics throughout the trading day.
To many investors, financial tools provided by Bloomberg and Reuters were indispensable in helping them post rich returns and prosper during the bull market of the last decade.
In fact, Bloomberg’s meteoric growth in revenue and profit made founder and majority owner Michael Bloomberg a billionaire, and enabled him to finance his run for U.S. president in 2020.
As explained below, both companies are known for their robust multimedia platforms, with key offerings being the Bloomberg Terminal and the Refinitiv Eikon (formerly known as the Thomson Reuters Eikon).
Key Takeaways
- Bloomberg and Reuters platforms have rivaled traditional news outlets with their extension of in-depth, real-time market data.
- Competition between Bloomberg Terminal and Refinitiv Eikon (formerly the Thomson Reuters Eikon) was fierce, as each developed new features tailored to financial professionals.
- Owned by the London Stock Exchange (LSEG) since 2021, Refinitiv has been rebranded as LSEG and the Eikon platform will be replaced by LSEG Workspace by 2025.
- Depending on individual needs and budgets, FactSet, S&P Capital IQ, Morningstar, and YCharts have been considered viable alternatives to Bloomberg Terminal and Refinitiv Eikon subscriptions.
Bloomberg L.P.
Founder Michael Bloomberg established the company bearing his name in 1981. Before his political career as a three-term mayor of New York City, Bloomberg was a well-known name on Wall Street.
After being laid off by the investment bank for which he’d worked for 20 years, Bloomberg launched his business information platform.
Bloomberg L.P. provided quick, high-quality business information to Wall Street. In the early 1980s, the company sold its first financial information system to Merrill Lynch, now a part of Bank of America Corp. (BAC). Merrill Lynch owned a stake in Bloomberg for years (which it later sold).
Today, Bloomberg L.P. is not only known for the Bloomberg Terminal but also as a global multimedia entity. The financial news and media company includes Bloomberg News, weekly magazine Bloomberg Businessweek, and radio and television broadcasts.
Bloomberg employs more than 2,700 news professionals in 146 countries, and offers clients access to research from more than 1,500 sources.
Even with its vast array of products and services, the Bloomberg Terminal continues to be Bloomberg L.P.’s core, revenue-generating product.
Bloomberg Terminal
The Bloomberg Terminal is an integral tool within the finance industry that is used to access, compile, and analyze financial information. Over the years, the Bloomberg Terminal has been transformed into a system that is accessible anywhere.
Many companies rely on the terminal to assess individual securities, market movements, and monitor news simultaneously. As of 2022, there were 350,000 Bloomberg Terminal subscriptions worldwide.
An extension, Bloomberg Tradebook, offers a robust, turnkey trading solution that routes orders for equities, options, and futures to appropriate destinations for execution. Traders, portfolio managers, and risk management analysts, among other financial professionals, rely on the program for daily market analysis and trading decisions.
Thomson Reuters
Created from Thomson Corp.’s 2008 acquisition of Reuters, Thomson Reuters is a multinational media and financial information resource. Thomson Reuters prides itself on delivering leading intelligence on various sectors, from finance, tax, and accounting to legal and intellectual property.
Refinitiv Eikon
In 2011, Thomson Reuters moved beyond the realm of financial news with the release of a more affordable option to the Bloomberg Terminal: the Thomson Reuters Eikon.
It was rebranded as the Refinitiv Eikon when the company Refinitiv was formed by the partnership of Thomson Reuters and The Blackstone Group in 2018. Then, in 2021, the London Stock Exchange Group (LSEG) bought Refinitiv, which served 30,000 institutions in about 180 countries and had an exclusive agreement to use Reuters data.
Like the Bloomberg Terminal, Refinitiv Eikon is a software system used to monitor and analyze financial information. Refinitiv Eikon provides financial professionals with access to market data, customizable analytical tools, Microsoft Excel integration, and sophisticated trade execution management tools.
Eikon To Be Retired
In 2023, Refinitiv announced that it would move all users of the Eikon terminal to the newer Workspace platform by 2025. Workspace is a collaboration with Microsoft.
Centralized Social Media Data
Furthermore, Refinitiv Eikon can use all posts on a given subject on X (formerly Twitter) to identify positive or negative indicators.
Unstructured data from social media sources have been vital in identifying trends over the past decade; however, few platforms other than Refinitiv Eikon have been able to collect and analyze this data.
In September 2023, the London Stock Exchange Group (LSEG), which owns Refinitiv, announced that it would rebrand Refinitiv as LSEG Data & Analytics. Then, in 2024, LSEG announced a partnership with Dow Jones whereby LSEG’s Workspace platform (which replaces Eikon) will integrate news, data, and analytics from Dow Jones’ The Wall Street Journal, Barron’s, Investor’s Business Daily, and MarketWatch.
Key Differences—Market Metrics
Refinitiv Eikon and Bloomberg Terminal are the two most used business information platforms in the world.
Market Share
The Bloomberg Terminal has a 33.4% market share, while Refinitiv Eikon has 19.6%, according to the latest available data. The remaining market share is primarily composed of FactSet, S&P Capital IQ, and Morningstar Direct.
Cost
For individuals who work at large financial institutions, the cost of either program is high but necessary to compete. However, for nonprofit higher education institutions, government agencies, and small businesses, the costs can be staggering.
Bloomberg Terminal is the most expensive among financial data providers, at $30,000 per year starting in January 2023, according to a letter sent to clients on August 25, 2022. For customers with two or more subscriptions, Bloomberg charges 26,580 per year.
By comparison, a fully loaded version of Refinitiv Eikon costs $22,000, and a discounted version costs $3,600, according to Wall Street Prep research from 2020.
Bloomberg Professional Services does not publish a price for a Bloomberg Terminal subscription, and Refinitiv does not publish a price for Refinitiv Eikon.
Less Expensive, Popular Options
While Bloomberg Terminal and Refinitiv Eikon are by far the two most popular platforms in this space, there are several less expensive substitutes. FactSet, S&P Capital IQ, Morningstar Inc., and YCharts are all viable alternatives. The choice depends on one’s needs and budget.
FactSet and Capital IQ also are popular financial data platforms for professionals. For smaller, more personal use, YCharts offers a “lite” and professional version. These subscriptions are geared toward individual investors, and the YCharts professional service is better suited for small businesses.
Is Refinitiv Eikon Still Used?
As of the third quarter of 2024, it is still used by some clients. However, the London Stock Exchange Group (which bought Refinitiv in 2021) has been migrating all users of Eikon to its newer financial platform called Workspaces. It expects to complete this migration by 2025, at which time Eikon will no longer be used. In addition, LSEG has retired the Refinitiv name by rebranding it as LSEG Data & Analytics.
When Was Bloomberg L.P. Founded?
Bloomberg L.P. was founded in 1981. It is known not only for the Bloomberg Terminal but also as a global multimedia entity that includes Bloomberg News, weekly magazine Bloomberg Businessweek, and radio and television broadcasts.
When Did Reuters Become Thomson Reuters?
Thomson Corp. acquired Reuters in 2008. Thomson Reuters is a multinational media and financial information resource on various sectors, from finance, tax, and accounting to legal and intellectual property. Its alternative to the Bloomberg Terminal was the Thomson Reuters Eikon, now known as the Refinitiv Eikon.
Where Do Bloomberg and Reuters Fit in the Business Information Platform Sphere?
Refinitiv Eikon, which uses Reuters data, and Bloomberg Terminal are the two most used business information platforms in the world in terms of market share. The Bloomberg Terminal has a 33.4% market share, while Refinitiv Eikon has 19.6%. In 2025, Eikon will be replaced by the platform Workspace, which uses Dow Jones data.
The Bottom Line
Bloomberg and Thompson Reuters are seen by many as among the fastest and most credible digital information sources in the financial industry, but their core services have offered users much more than news.
Users have looked to their services, which have changed over time, to find the most up-to-the-minute information available on trading metrics throughout the trading day.