Here is why the Blackstone Group acquired a majority stake in Thomson Reuters Financial and Risk business – data is the new oil.
Tony James, Blackstone Group LP’s President made it amply clear to investors that the future of Thomson Reuters Financial and Risk business is in selling data and not in selling terminal desktop products to bankers, investors and traders.
“We’re big believers in data and that’s certainly a driver behind the Thomson Reuters business,” said James when asked what was Blackstone’s angle in approaching data technology and how it might expand its expertise in that area.
“The most valuable part of that business by far is the data part. The terminals are the legacy business for which people think of them but that’s not where the future of that company is,” said James, without providing any further details.
Earlier this week, Blackstone agreed to acquire a majority stake in Thomson Reuters Corp’s F&R business.
According to Martin Brand, the Blackstone executive who led the purchase of the majority stake in Thomson Reuters F&R business, said the firm wants to improve all parts of that business, including F&R’s flagship desktop product – the Eikon platform.
“The data feeds are faster growing. At the same time, we’re fully committed to investing significantly behind Eikon and view it as a business we’re excited about,” said Brand.