Goldman Sachs, Morgan Stanley, JP Morgan Chase, Bank of America, Deutsche Bank, HSBC, BlackRock and the hedge fund Maverick Capital are preparing a sneak attack on Bloomberg, the news agency that has managed to make its terminals essential for every self-respecting Wall Street (and beyond) trader.
According to a Reuters report, these banks, led by Goldman Sachs, are preparing to invest in chat and instant messaging startup Perzo, aiming to create an alternative to Bloomberg's chat app.
The reason? It could be none other than money. Banks are trying to cut costs amid weak trading volumes and rising regulatory compliance costs. Bloomberg has been the most popular messaging app for Wall Streeters for years, but the app is only available to those with a terminal, which costs about $20,000 a year.
On the other hand, the Perzo application is free…
Banks have been looking for alternatives to Bloomberg's messaging service for years, but they haven't made much progress, mainly because everyone on Wall Street uses the company's terminals.
But now, a market insider tells Reuters that Bloomberg will become the “new Blackberry,” which dominated the smartphone market until Apple released the iPhone and Blackberry’s company collapsed.
“The Bloomberg ecosystem is very hard to destroy,” warns Jefferies analyst Dan Dolev. “People say it’s the most expensive social media system in the world.”.
Bloomberg's rise began in the 1980s, when it became the primary source of bond data and information.
Messaging apps play a leading role in the daily life of Wall Street, as they are used by banks to inform their clients about stock, bond, etc. prices, by hedge funds to talk about trading ideas, and by traders to chat with their sales colleagues.
Goldman Sachs has been looking for alternatives to Bloomberg's related program for years, and has launched the "Babel" project since 2013, which aims to develop a competing application.
The bank's desire - and that of others on Wall Street - to break away from Bloomberg was strengthened when it became known that the agency's journalists could "spy" on terminal users.
Source: newmoney.gr
Source: planet-greece.blogspot.com
